Jessica Owned 200 Shares of OK Corporation with a Basis

question 94

Multiple Choice

Jessica owned 200 shares of OK Corporation with a basis of $12,000 and a FMV of $24,000.Jessica received 20 stock rights as a nontaxable distribution with a total FMV of $8,000.Jessica sold the stock rights for $4,000.Jessica's gain or loss on the sale was

• A)$1,000.
• B)$3,000.
• C)$4,000.
• D)($4,000).

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Definitions:

Marketing Firm

A company that specializes in creating and implementing marketing strategies to promote products or services to target audiences.

Knowledge Workers

Employees whose main capital is knowledge, typically working in fields such as IT, finance, and education, where they think for a living.

Technically Efficient

Refers to a scenario where a firm or system operates in such a way that it cannot produce more of one good without reducing the output of another, utilizing the least amount of resources.

Considerable Autonomy

The significant freedom and independence given to employees or units to make decisions and perform their work without close supervision.