Adam Purchased 1,000 Shares of Airco Inc

question 107

Multiple Choice

Adam purchased 1,000 shares of Airco Inc.common stock for $22,000 on February 3,2013.On April 1,2015,Adam received 100 new shares in a nontaxable stock dividend.As of April 1,the stock was trading at $25 per share.Adam sells the 100 new shares on June 15,2015 for $2,400.Due to the stock sale,Adam will recognize a

• A)$100 STCL.
• B)$2,400 STCG.
• C)$400 STCG.
• D)$400 LTCG.

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Definitions:

Chlorhexidine

An antiseptic used to clean the skin or mouth, preventing infections.

Chest Tube

A medical device inserted through the chest wall to remove air, fluid, or pus from the pleural space, helping the lungs to expand properly.

Water-Seal Chamber

A component of a chest tube drainage system that prevents air from re-entering the patient’s pleural space and allows trapped air and fluid to escape from the chest.

Continuous Bubbling

Often observed in certain medical devices or procedures, indicating a steady flow of air or gas through a liquid, which may be normal or indicative of a problem.