Ethel, Hannah, and Samuel, Unrelated Individuals, Own the Stock in Broadbill

question 142

Multiple Choice

Ethel, Hannah, and Samuel, unrelated individuals, own the stock in Broadbill Corporation (E & P of $700,000) as follows: Ethel, 300 shares? Hannah, 300 shares? and Samuel, 400 shares. Broadbill redeems 200 of Samuel's shares (basis of $175,000) for $250,000. If Samuel's stock is a capital asset and has been held for over three years, Samuel has:

• A) A long-term capital gain of $75,000.
• B) A short-term capital gain of $75,000.
• C) Ordinary income of $250,000.
• D) Ordinary income of $75,000.
• E) None of the above.

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Definitions:

Generalized Conditioned Reinforcer

A specific type of conditioned reinforcer. Generalized conditioned reinforcers can be exchanged for a virtually limitless amount of items and activities. Money is the prototypic example.

Social Reinforcement

A positive or negative feedback from others that influences the likelihood of a behavior's recurrence, enhancing social learning.

Group-Oriented Contingencies

A strategy used within group settings where rewards or consequences are delivered based on collective behavior or performance.

Interdependent

Mutual dependence between things. In social contexts, it refers to relationships where individuals or groups rely on each other.