A Worthless Security Had a Holding Period of 6 Months

question 76

Multiple Choice

A worthless security had a holding period of 6 months when it became worthless on December 10, 2017. The investor who had owned the security had a basis of $20,000 for it. Which of the following statements is correct?

• A)The investor has a long-term capital loss of $20,000.
• B)The investor has a short-term capital loss of $20,000.
• C)The investor has a nondeductible loss of $20,000.
• D)The investor has a short-term capital gain of $20,000.
• E)None of the above.

---

Definitions:

Elephant Populations

The number and distribution of elephants in a given area, often studied in the context of conservation and ecological balance.

Property Rights

Legal rights to use, control, and derive benefit from a property, which include rights of ownership, use, and disposition.

State Control

Governmental regulation and oversight of economic and social activities, often to manage resources and ensure public welfare.

Resource Extraction

The process of retrieving raw materials from the natural environment for human use.