Ms Fresh Bought 1,000 Shares of Ibis Corporation Stock for $5,000

question 42

Multiple Choice

Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,000 on January 15, 2018. On December 31, 2020, she sold all 1,000 shares of her Ibis stock for $4,500. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2021, for $3,000. What is Ms. Fresh's recognized loss on her 2020 sale, and what is her basis in her 1,000 shares purchased in 2021?

• A)$0 LTCL and $3,500 basis.
• B)$200 LTCL and $3,300 basis.
• C)$300 LTCL and $3,200 basis.
• D)$400 LTCL and $3,100 basis.
• E)$500 LTCL and $3,000 basis.

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Definitions:

Bicameral Legislature

A legislative body made up of two chambers or houses, typically a lower house and an upper house, aiming to provide balance and thorough review of legislation.

House District

A defined geographic area represented by a member in the lower chamber of a legislative body, particularly in the context of the U.S. House of Representatives.

Incumbents Won Reelection

Describes a situation where current officeholders are successful in securing another term in office during an election.

Sociological Representation

Sociological representation refers to elected officials representing the demographic characteristics or interests of their constituents, such as race, gender, or economic status.