If a Stock Was Purchased for $3000 in January 2003

question 35

Multiple Choice

If a stock was purchased for $3000 in January 2003 and is sold in December 2003 for $4000, what is the taxable result?

• A)Capital gain of $1000 and taxable income of $500
• B)Business income of $1000 and taxable amount of $1000
• C)Capital gain of $1000 and taxable income of $1000
• D)Capital income of $1000 and taxable capital of $500

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Definitions:

Fund-Raising

The process of gathering voluntary contributions of money or resources from individuals, corporations, government agencies, or others to support nonprofit organizations.

Philanthropic Giving

The act of donating money, goods, services, and time to support charitable causes and contribute to the welfare of others.

Fundraising Pyramid

A graphical representation used by nonprofits to illustrate the hierarchy of donor giving, starting from small individual donors at the base to major gifts at the top.

Giving Life Cycle

Stages through which an individual or entity passes as they become aware of, decide upon, and engage in philanthropic giving.