Lem Lumberjack Sells 100 Shares (Basis of $5,000) of Redwood

question 6

Multiple Choice

Lem Lumberjack sells 100 shares (basis of $5,000) of Redwood Corporation common stock on March 8, 2012, for $4,000. On March 29, 2012, Lem purchases 50 shares of Redwood Corporation common stock for $2,500. Lem's recognized loss on the sale is:

• A) $1,000
• B) $500
• C) $1,500
• D) $0

---

Definitions:

Job Characteristics Model

A theory that proposes that a job is satisfying to the extent that it involves skill variety, task identity, task significance, autonomy, and feedback.

Lives Of People

The various experiences, relationships, and events that constitute the existence of individuals in society.

Employee

An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.

First-Level Outcomes

Initial results or effects of an action or decision, often serving as the immediate impacts before more complex or long-term outcomes emerge.