Brad Owns 100 Shares of AAA Corporation with a Basis

question 42

Multiple Choice

Brad owns 100 shares of AAA Corporation with a basis of $6,000 and a FMV of $24,000.Brad receives 15 stock rights as a nontaxable distribution with a total FMV of $6,000.Brad allows the stock rights to expire.Brad's loss recognized and the basis of the original 100 shares after expiration of the stock rights is

• A)$0 and $4,800.
• B)$0 and $6,000.
• C)($1,200)and $4,800.
• D)($1,200)and $6,000.

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Definitions:

Roe v. Wade

The landmark Supreme Court decision in 1973 that established a woman's legal right to an abortion under the U.S. Constitution.

State Abortion Laws

Laws enacted at the state level in the United States that regulate the availability and provision of abortion services.

Segregation

The enforced separation of different racial groups in a country, community, or establishment.

Brown v. Board of Education

A landmark 1954 U.S. Supreme Court case that declared state laws establishing separate public schools for black and white students unconstitutional.