Mike,a Dealer in Securities and Calendar-Year Taxpayer,purchased a Security for Inventory

question 31

Multiple Choice

Mike,a dealer in securities and calendar-year taxpayer,purchased a security for inventory on November 18,2013 for $15,000.The FMV on December 31,2013 was $16,000.The security was sold on December 19,2014 for $16,500.These transactions result in

• A)$0 ordinary income in 2013; $1,500 ordinary income in 2014.
• B)$0 ordinary income in 2013; $1,500 LTCG in 2014.
• C)$1,000 ordinary income in 2013; $500 LTCG in 2014.
• D)$1,000 ordinary income in 2013; $500 ordinary income in 2014.

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Definitions:

Potential Polluters

Potential polluters are individuals, companies, or other entities that are capable of releasing pollutants into the environment, necessitating regulatory oversight and pollution control measures.

Emissions Fees

Charges imposed on entities for the release of pollutants into the environment.

Emissions Standards

Regulations that set the maximum amount of pollutants that can be emitted by vehicles, industrial plants, and other sources.

Transferable Permits

Licenses or rights, often issued by governments, allowing holders to emit a certain amount of pollution or use a specific amount of a resource, which can be bought or sold.