E Always Had Eyes for a Deal Despite Some Initial Growth Based on the Idea, the Pizza

question 58

Multiple Choice

E always had eyes for a deal.When B approached her about his idea of having his chain of pizza parlors deliver video tapes along with pizzas, E saw dollar signs.B needed financing, and E gave the corporation $10,000 in exchange for stock.A summary of the corporation's balance sheet after the exchange revealed the following: $\begin{array}{lc} \text { Assets} &\$3,000,000\\ \text { Liabilities } &500,000\\ \text {Retained earnings } &1,200,000\\ \text {Capital stock } &800,000\\\end{array}$ Despite some initial growth based on the idea, the pizza business fell on hard times due to heavy competition.This year E sold her stock at a $9,000 loss, her only property transaction (i.e., sales during the year) .This year, E may deduct how much?

• A)$0
• B)$3,000
• C)$9,000
• D)$10,000
• E)None of the above

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Definitions:

Physical Traits

Observable characteristics of an individual's body, such as height, hair color, and facial features.

Gene Pair

Two alleles located at the same position on homologous chromosomes, contributing to a specific trait in an organism.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring.

Genetically Influenced Traits

Characteristics or features of an organism that are affected by its genetic makeup.