Sadie Sold 11 Shares of Stock to Her Brother, George

question 67

Multiple Choice

Sadie sold 11 shares of stock to her brother, George, for $570 16 months ago. Sadie had purchased the stock for $740 two years earlier. If George sells the stock for $910, what are the amount and character of his recognized gain or loss in the current year?

• A)$0.
• B)$170 short-term capital gain.
• C)$170 long-term capital gain.
• D)$340 short-term capital gain.
• E)None of the choices are correct.

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Definitions:

Implicit Attitudes

Unconscious beliefs or feelings that may influence a person's behavior and understanding.

Scapegoat Theory

The theory that prejudice offers an outlet for anger by providing someone to blame.

Ingroup Bias

The tendency to favor one's own group over other groups, leading to preferential treatment and positive feelings towards in-group members.

Frustration

A feeling of upset or annoyance resulting from being unable to achieve one’s goals or satisfy one’s needs.