Lucia Owns 100 Shares of Cronco Inc

question 107

Multiple Choice

Lucia owns 100 shares of Cronco Inc.which she purchased on December 1 of last year for $10,000.The stock is not Sec.1244 stock.On July 1 of the current year,Lucia receives notice from the bankruptcy court that Cronco Inc.has been liquidated,and there are no assets remaining for shareholders.As a result,Lucia will have

• A)a short-term capital loss of $10,000.
• B)a long-term capital loss of $10,000.
• C)an ordinary loss of $10,000.
• D)no loss allowed.

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Definitions:

Punishment

An unpleasant consequence given to reduce the occurrence of a particular behavior.

Stimulus Response Bond

The connection formed between a specific stimulus and a specific response through conditioning.

Matching Law

A principle in behavioral psychology stating that the proportion of responses directed toward an option matches the proportion of reinforcements obtained from that option.

Contend

To strive in opposition or against difficulties; to compete or argue.