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.

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Definitions:

Self-Definition

Cluster of characteristics used to describe oneself.

Temper

A personality trait reflecting the typical mood or emotional state of an individual, affecting their response to situations.

Self-Regulation

A child’s independent control of behavior to conform to understood social expectations.

Sibling Relationships

The dynamic and interactions between brothers and sisters, which can greatly affect individual development and family dynamics.