Margaret Died on September 16, 2018, When She Owned Securities

question 1610

Multiple Choice

Margaret died on September 16, 2018, when she owned securities with a basis of $50,000 and a FMV of $60,000. Caroline inherited the property and sold it on December 19, 2018 for $67,000. What is Caroline's reported gain on this sale?

• A) $7,000 STCG
• B) $17,000 LTCG
• C) $7,000 LTCG
• D) $17,000 STCG

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Definitions:

Physiological Functions

The biological processes and activities carried out by the organs and systems of an organism to maintain life.

Preexisting Cells

The principle that cells are formed from the division of existing cells, as stated in the cell theory.

Powerful Enzymes

Biomolecules that significantly speed up the rate of virtually all of the chemical reactions that take place within cells.

Worn-out Cell Components

Describes cellular components that have become dysfunctional or degraded after their normal lifespan or use within the cell, needing recycling or removal.