Brett Owns Stock in Oriole Corporation (Basis of $100,000) as an Investment

question 127

Multiple Choice

Brett owns stock in Oriole Corporation (basis of $100,000) as an investment. Oriole distributes property (fair market value of $375,000; basis of $187,500) to him during the year. Oriole has current E & P of $25,000 (which includes the E & P gain on the property distribution) , accumulated E & P of $100,000, and makes no other distributions during the year. What is Brett's capital gain on the distribution?

• A) $0
• B) $100,000
• C) $150,000
• D) $187,500
• E) None of these.

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Definitions:

Conviction

In the conviction step of the prospect’s mental buying process, the salesperson should strive to develop a strong belief that the product is best suited to the prospect’s specific needs. It is established when no doubts remain about purchasing the product.

Trial Close

A sales technique where the seller asks a prospective buyer for their opinion or a minor decision regarding the sale, used to gauge interest or objections early.

Questions

Inquiries made to gather information, clarify doubts, or engage in a conversation, critical in sales, research, and daily communication.

Angular Washing Machines

Washing machines designed with geometric or angular aesthetics, possibly to fit specific spaces or for modern design preferences. However, this term is not commonly used in a standard context; washing machines are usually not categorized by angularity.