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

question 65

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.What is the basis in the new stock she purchased?

• A)$200,000
• B)$300,000
• C)$800,000
• D)$1,100,000

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Definitions:

Extreme

Representing a high degree of a quality or condition, often characterized by actions or opinions that are far from the norm or average.

Self-Categorisation Theory

A psychological theory explaining how individuals classify themselves and others into categories, affecting behavior and social identity.

Polarisation

The division into two sharply contrasting groups or sets of opinions or beliefs.

Outgroup

Any group that an individual does not belong to or identify with, often perceived as fundamentally different or alien.