J Purchased 100 Shares of C Common Stock in 2007

question 19

Multiple Choice

J purchased 100 shares of C common stock in 2007 for $1,000.J purchased another 100 shares in 2012 for $10,000.In the current year, C adopts a plan of liquidation and distributes $8,000 to J as the first installment ($4,000 for each block) .J's recognized gain or loss on the distribution is

• A)$3,000 loss
• B)$0 gain or loss
• C)$3,000 gain
• D)$8,000 gain

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