Barbara Owns 100 Shares of Bond Corporation Stock with a Basis

question 83

Multiple Choice

Barbara owns 100 shares of Bond Corporation stock with a basis of $40,000. Barbara receives two liquidating distributions, including $16,000 paid last year and $20,000 paid in the current year. An additional distribution of an undetermined amount is expected next year. On last year's tax return, Barbara can recognize a loss of

• A)$0.
• B)$1,000.
• C)$4,000.
• D)$14,000.

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Definitions:

Exponents

Exponents indicate how many times a number, the base, is multiplied by itself.

Rational Exponents

Exponents expressed as fractions, representing powers and roots of a base number, and allowing for more complex relationships in algebra.

Expression

A combination of numbers, variables, operators, and sometimes parentheses that represents a quantity or a relationship.

Calculator

An electronic device or software program used for performing mathematical calculations.