Ms Fresh Bought 1,000 Shares of Ibis Corporation Stock for $5,500

question 48

Multiple Choice

Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,500 on January 15, 2018. On December 31, 2020, she sold all 1,000 shares of her Ibis stock for $4,750. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2021, for $3,125. 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 $3,875 basis.
• B)$300 LTCL and $3,575 basis.
• C)$450 LTCL and $3,425 basis.
• D)$600 LTCL and $3,275 basis.
• E)$750 LTCL and $3,125 basis.

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Definitions:

Stereotypes

Oversimplified generalizations about groups of people that may not accurately reflect reality.

Social-Psychological Process

A mechanism through which social interactions and structures influence individuals' thoughts, feelings, and behaviors.

Psychological Processes

The functions of the mind that encompass all aspects of perceiving, thinking, remembering, and understanding, which influence behavior.

Attribution Theory

A social psychology theory that explains how individuals infer the causes of their own and others' behavior, attributing it to either internal dispositions or external situations.