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

question 85

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)$ 10,000 STCG
• C)$ 15,000 LTCG
• D)$ 15,000 STCG

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Definitions:

Capacity Analysis

Assessing the required production capability an organization needs to keep up with altering product demands.

Customer Service Department

A division within a business that handles customer inquiries, concerns, and facilitates service requests to enhance customer satisfaction.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products or services based on the time resources are used.

Customer Support Department

A sector within a company responsible for handling inquiries, complaints, and support requests from customers.