Monte Inherited 1,000 Shares of Corporation Zero Stock from His

question 298

Multiple Choice

Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March 4 of the current year. His father paid $30 per share for the stock on September 2, 2005. The FMV of the stock on the date of death was $50 per share. On September 4 this year, the FMV of the stock was $55 per share. The executor did not elect the alternate valuation date. Monte sold the stock for $65 per share on December 3. What is the amount and nature of any gain or loss?

• A) $10,000 LTCG
• B) $15,000 LTCG
• C) $35,000 LTCG
• D) $15,000 STCG

---

Definitions:

Secondary Circular Reactions

A Piagetian developmental stage in which infants repeat pleasing actions with their bodies and manipulable objects.

Tertiary Circular Reactions

Advanced repetitive behaviors in infants where they experiment with new variations of actions to see outcomes, indicating cognitive development.

Mental Representations

Internal depictions in the mind of objects, concepts, or events, enabling thinking, problem-solving, and planning.

Working Memory

A mental system tasked with briefly maintaining information for processing, crucial for reasoning, directing decision-making, and influencing behavior.