When a Security Becomes Worthless

question 62

Multiple Choice

When a security becomes worthless
I.no loss can be deducted because a realization has not occurred.
II.the measure of the loss is the adjusted basis of the securities.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Nylon 6

A type of polyamide or nylon made from a single monomer, caprolactam, characterized by its long, repetitive chains, used in textile and plastic industries.

Polymer

Large molecules composed of repeating structural units known as monomers, bonded together via chemical reactions.

Reaction

A process in which substances (reactants) interact to form new substances (products) with different chemical and physical properties.

Cross-Linking

The process of connecting or binding two or more polymer chains together through covalent, ionic, or hydrogen bonds, which affects the physical properties of the material.