Greg, a Cash Method of Accounting Taxpayer, Owns 100 Shares

question 74

Multiple Choice

Greg, a cash method of accounting taxpayer, owns 100 shares of Parker Corporation stock with a basis of $20,000. Greg receives two liquidating distributions of $8,000 on March 3 of last year, and $8,000 on August 8 of this year. The amount of the second distribution is not known until June 15 of this year. Greg recognizes

• A)a gain of $8,000 last year and a loss of $12,000 this year.
• B)a loss of $2,000 last year and a loss of $2,000 this year.
• C)no loss last year and a $4,000 loss this year.
• D)none of the above.

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Definitions:

Married Men

Male individuals who are legally bound in matrimony to a spouse, encompassing a wide range of personal, social, and legal aspects.

Divorced Men

Men who have legally ended their marriage. This term specifically refers to their marital status and the aftermath experienced.

Naturalistic Observation

An approach to research in which the researcher engages in careful observation of behavior without intervening directly with the subjects.

Play Behavior

Activities engaged in for enjoyment and recreation, especially by children, that are often spontaneous and involve imaginative or physical activity.