Victor, a Calendar- Year Taxpayer, Owns 100 Shares of AB

question 1165

Multiple Choice

Victor, a calendar- year taxpayer, owns 100 shares of AB Corporation stock, which was purchased three years ago for $5,000. Victor sells all 100 shares on December 27, of the current year, for $4,000 and on January 5, of the following year, purchases 60 shares of AB Corporation stock. Victor's recognized loss will be

• A) $600.
• B) $400.
• C) $1,000.
• D) $0.

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Definitions:

Iron-Nickel Meteorite

A type of meteorite consisting mainly of iron and nickel, typically formed from the core of ancient asteroids.

Continental Crust

The type of Earth’s crust that underlies the continents and the continental shelves; average granitic composition, but includes diverse types of material.

Oceanic Crust

the part of the Earth's crust that underlies the oceans, thinner and denser than continental crust.

Upper Mantle

The upper mantle refers to the portion of the Earth's mantle that lies just beneath the crust, extending down to a depth of about 660 kilometers, involved in tectonic movements and convection currents.