In 2001, Mrs

question 60

Multiple Choice

In 2001, Mrs. Qualley, contributed $100,000 in exchange for 1,000 shares of Little Corporation, which is a qualified small business. This year, Mrs. Qualley's only capital transaction was the sale of the 1,000 shares of Little qualified small business stock for $180,000. Compute Mrs. Qualley's tax on her capital gain from this sale.

• A) $6,000
• B) $11,200
• C) $22,400
• D) None of the above.

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Definitions:

Limitation of Liability Clause

A contractual provision that limits the amount one party can claim from another in case of damage, loss, or injury.

Partial Summary Judgment

A legal decision made by a court on certain aspects of a case without a full trial, resolving some but not all of the issues.

Restraint of Trade

Restraint of trade refers to any activity or agreement that restricts competition or the free operation of the market.

Geographical Restriction

Limitations placed on where a business can operate or where a person can live or work, often found in contracts or legal agreements.