Adam Purchased 1,000 Shares of Airco Inc

question 58

Multiple Choice

Adam purchased 1,000 shares of Airco Inc.common stock for $22,000 on February 3,2014.On April 1,2019,Adam received 100 new shares in a nontaxable stock dividend.As of April 1,the stock was trading at $25 per share.Adam sells the 100 new shares on June 15,2019 for $2,400.Due to the stock sale,Adam will recognize a

• A)$100 STCL.
• B)$2,400 STCG.
• C)$400 STCG.
• D)$400 LTCG.

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Definitions:

Loads

In finance, refers to fees or commissions charged by a mutual fund, which can be at the time of purchase (front-end load), time of sale (back-end load), or as an annual expense (level load).

Absolute Advantage

The ability of a party (country, company, individual) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient trade possibilities.

Specialize

Refers to the process of focusing on a specific area of knowledge or skill within a broader field.