On January 31 of the Current Year,Sophia Pays $1,000 for an Option

question 2

Multiple Choice

On January 31 of the current year,Sophia pays $1,000 for an option to acquire 100 shares of Texas Corporation common stock for $105 per share at any time prior to December 31.As of December 31,Sophia had not exercised the option or sold it.Which of the following statements is correct?

• A)Sophia may recognize a $1,000 STCL.
• B)Sophia may recognize a $1,000 LTCL.
• C)Sophia may recognize a $1,000 ordinary income.
• D)Sophia may not recognize a loss.

Understand the role of memory construction in recalling past experiences and how current assumptions can distort memories.

Learn the impact of external suggestions and misinformation on memory recall and construction.

Recognize the conditions under which memory retrieval failures occur and strategies to improve retrieval.

Understand the role of encoding failure in memory loss and strategies to enhance memory encoding.

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Definitions:

Output

The amount of goods or services produced by a business, industry, or economy.

Price

The financial sum expected, necessary, or handed over in exchange for something.

Peak Efficiency

The highest level of operational productivity or effectiveness where resources are utilized in the most optimal way.

Preferential Tax Breaks

These are specific tax provisions that benefit certain activities, industries, or groups, reducing their tax burden compared to others.