Greg, a Cash Method of Accounting Taxpayer, Owns 100 Shares

question 74

Multiple Choice

Greg, a cash method of accounting taxpayer, owns 100 shares of Parker Corporation stock with a basis of $20,000. Greg receives two liquidating distributions of $8,000 on March 3 of last year, and $8,000 on August 8 of this year. The amount of the second distribution is not known until June 15 of this year. Greg recognizes

• A)a gain of $8,000 last year and a loss of $12,000 this year.
• B)a loss of $2,000 last year and a loss of $2,000 this year.
• C)no loss last year and a $4,000 loss this year.
• D)none of the above.

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Definitions:

Hypoactivity

Reduced activity or underperformance in certain areas or systems of the body or brain.

Hyperalgesia Response

Heightened pain sensitivity resulting from damage to pain receptors or the peripheral nervous system.

AESOP Model

A theoretical framework for understanding how anecdotes and personal experiences influence the persuasion process.

Unconditioned Stimulus

An innate trigger that spontaneously induces a reaction without the need for previous learning.