Brad Owns 100 Shares of AAA Corporation with a Basis

question 1572

Multiple Choice

Brad owns 100 shares of AAA Corporation with a basis of $6,000 and a FMV of $24,000. Brad receives 15 stock rights as a nontaxable distribution with a total FMV of $6,000. Brad allows the stock rights to expire. Brad's loss recognized and the basis of the original 100 shares after expiration of the stock rights is

• A) $0 and $6,000.
• B) ($1,200) and $4,800.
• C) ($1,200) and $6,000.
• D) $0 and $4,800.

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Definitions:

Response

The reaction or reply to a stimulus or situation in the environment, often studied in psychology to understand behavior.

Operants

Behaviors that are modified by their consequences, a concept central to operant conditioning theory in psychology.

Elicited Behaviors

Elicited behaviors are responses produced automatically by a specific stimulus, often instinctual and not learned through experience.

Molecular Terms

Language or terminology used to describe the composition, structure, and properties of molecules.