In September of 2014,Michelle Sold Shares of Qualified Small Business

question 64

Multiple Choice

In September of 2014,Michelle sold shares of qualified small business stock for $1,000,000 that had a basis of $200,000.She had held the stock for 7 months.Forty-five days after the sale she purchased other qualified small business stock for $1,100,000.How much of the gain will she recognize?

• A)$ 0
• B)$100,000
• C)$800,000
• D)$900,000

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Definitions:

Marketable Securities Portfolio

A collection of liquid financial instruments and securities that can be quickly converted into cash at a value close to the market rates.

Treasury Bills

Short-term government securities with maturity periods of one year or less, sold at a discount from their face value.

Desire To Invest

The inclination or willingness of individuals or entities to allocate resources to investment opportunities with the expectation of earning a return.