On May 18 of Last Year,Carter Sells Unlisted Stock with a Cost

question 42

Multiple Choice

On May 18 of last year,Carter sells unlisted stock with a cost of $24,000 for $60,000.Carter collects $20,000 initially and is scheduled to receive $10,000 each year for four years starting this year plus an acceptable rate of interest.After receiving the first $10,000 scheduled installment payment,Carter is unable to collect any further payments.After incurring legal fees of $1,000,Carter recovers a portion of the stock valued at $26,000.As a result of the repossession,Carter must report

• A)ordinary income of $9,000.
• B)capital gain of $9,000.
• C)ordinary income of $13,000.
• D)capital gain of $13,000.

---

Definitions:

Heredity And Environment

The interplay between genetic inheritance and external factors that influence an individual's characteristics, development, and life outcomes.

Uterus

A major female hormone-responsive reproductive sex organ of most mammals, including humans, used to house and nourish the developing fetus during pregnancy.

Zygote

The fertilized egg; it enters a 2-week period of rapid cell division and develops into an embryo.

Uterine Wall

The thick layer of muscle and other tissues that form the structure of the uterus, playing a crucial role during menstruation and childbirth.