Monte Inherited 1,000 Shares of Corporation Zero Stock from His

question 43

Multiple Choice

Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March 4 of the current year.His father paid $30 per share for the stock on September 2,2005.The FMV of the stock on the date of death was $50 per share.On September 4 this year,the FMV of the stock was $55 per share.The executor did not elect the alternate valuation date.Monte sold the stock for $65 per share on December 3.What is the amount and nature of any gain or loss?

• A)$10,000 LTCG
• B)$35,000 LTCG
• C)$15,000 LTCG
• D)$15,000 STCG

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Definitions:

Systematic Desensitization

A therapeutic technique used to reduce phobia or anxiety responses by gradually exposing the person to the feared object or situation in a controlled manner.

Anxiety Hierarchy

A list of situations that provoke anxiety arranged in order from least to most anxiety-inducing, used in systematic desensitization therapy.

Deep Relaxation

A profound state of physical and mental calm achieved through techniques such as meditation, deep breathing, or yoga.

Behavioural Rehearsal

A technique used in therapy and training situations where individuals practice behaviors in a safe environment before applying them in real life.