To Be Considered a Section 1202 Gain,the Stock Being Sold

question 65

Multiple Choice

To be considered a Section 1202 gain,the stock being sold must meet all of the following characteristics except

• A)the stock must be issued after August 10,1993.
• B)the stock must be held more than five years.
• C)the corporation which issued the stock must be a C corporation.
• D)at least 50% of the value of the corporation's assets must be used in the active conduct of one or more qualified trades or businesses.

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Definitions:

Serum

Plasma minus fibrinogen and other clotting agents.

Plasma

The liquid component of blood that carries cells and proteins throughout the body, consisting mostly of water, electrolytes, and proteins.

Proteins

Large biomolecules consisting of one or more long chains of amino acid residues, crucial for the structure, function, and regulation of the body's tissues and organs.

Fibrinogen

A soluble plasma glycoprotein that is converted to fibrin in the blood clotting process, playing a key role in wound healing.