On October 1 of Last Year, Canadian Trader Corp

question 18

Multiple Choice

On October 1 of last year, Canadian Trader Corp.(CTC) purchased 1,000 shares of the Regal Bank for $50,000 as a trading investment.At year end, December 31, the fair value of these shares was $52,000.On February 1 of this year, CTC sold all these shares for $51,000.The realized gain (loss) that CTC will report this year is

• A)a gain of $1,000.
• B)a gain of $2,000.
• C)a loss of $2,000.
• D)a loss of $1,000.

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Definitions:

Equivocality

The existence of multiple and potentially conflicting interpretations or meanings within a communication context.

Predictable Context

An environment or situation in which outcomes can be anticipated based on known variables, past experiences, and established patterns.

Suprasystem

A larger system that encompasses one or more sub-systems, highlighting the hierarchical and relational aspects of complex systems.

Subsystem

A component of a larger system that has its specific role and functions within the overall structure.