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:

Moral Obligation

A commitment or duty to act in a morally sound manner, often beyond legal requirements, guided by personal ethics or conscience.

Income Redistribution

The process of reallocating income through taxation, welfare policies, or other government programs to reduce income inequality.

Utilitarian Justice

A theory in ethics and economics that suggests actions should be judged as morally right if they result in the greatest good for the greatest number of people.

Distributional Justice

The philosophical and theoretical discussions and principles concerning the fair allocation of goods among members of society.