Each of the Numbered Items Below Is Accorded Only One

question 62

Multiple Choice

Each of the numbered items below is accorded only one of the following lettered treatments. Use the existing law as it applies to the current year, match the best answer to the statements below.
-Tina receives 100 shares of Welby stock as a result of a 2 for 1 stock split. The shares have a value of $7,000 the day of the split.

• A)Fully excluded from gross income.
• B)Fully included in gross income.
• C)Partially excluded from gross income.

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Definitions:

Trade Balance

The difference between the monetary value of a nation's exports and imports over a certain timeframe.

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Joseph Stiglitz

An American economist and professor known for his work on income distribution, risk, and information economics, and a recipient of the Nobel Memorial Prize in Economic Sciences.

NAFTA Treaty

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries and facilitate the free flow of goods and services.