Sam Shoeman, a Calendar Year Taxpayer, Purchased Stock in Eaton

question 79

Multiple Choice

Sam Shoeman, a calendar year taxpayer, purchased stock in Eaton Corporation on July 12, 2012, for $2,500. On December 12, 2012, Eaton went bankrupt. What is Sam's 2012 loss?

• A) $2,500 long-term capital loss
• B) $2,500 ordinary loss
• C) $2,500 short-term capital loss
• D) No loss

Recognize the common elements and tools used in financial planning models.

Analyze the relationship between sales forecasts, asset requirements, and financial planning.

Distinguish between the myths and realities of financial planning's impact on firm growth and management vigilance.

Appreciate the significance of setting goals and establishing priorities through financial planning.

---

Definitions:

Accounts Receivable

Receivables from customers for goods delivered or services provided by a business, not yet paid for.

Creditor

A party or entity that lends money or extends credit to another party, typically expecting repayment in the future.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Note Payable

A written agreement where one party promises to pay another party a specific sum of money, either on demand or at a set future date.