Andrew Acquires 2,000 Shares of Eagle Corporation Stock for $100,000

question 189

Multiple Choice

Andrew acquires 2,000 shares of Eagle Corporation stock for $100,000 on March 31, 2014. On January 1, 2018, he sells 125 shares for $5,000. On January 22, 2018, he purchases 135 shares of Eagle Corporation stock for $6,075. When does Andrew's holding period begin for the 135 shares?

• A) January 22, 2018.
• B) January 22, 2018 for 125 shares and March 31, 2014 for 10 shares.
• C) March 31, 2014.
• D) March 31, 2014, for 125 shares and January 22, 2018, for 10 shares.
• E) None of the above.

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Definitions:

General Partners

Individuals in a partnership who are responsible for managing the business and are personally liable for its debts.

Liability

Refers to the state of being legally responsible for something, particularly in reference to debts or legal obligations.

ULPA

A high-efficiency air filter standard known as Ultra Low Particulate Air, capable of removing at least 99.99% of dust, pollen, mold, bacteria, and other airborne particles.

Limited Partner

An investor in a partnership who is not involved in daily business operations and whose liability is limited to the amount of their investment.