On June 1, 2012, Brady Purchased an Option to Buy

question 36

Multiple Choice

On June 1, 2012, Brady purchased an option to buy 1,000 shares of General, Inc.at $40 per share.He purchased the option for $3,000.It was to remain in effect for five months.The market experienced a decline during the latter part of the year, so Brady decided to let the option lapse as of December 1, 2012.On his 2012 tax return, what should Brady report?

• A)A $3,000 long-term capital loss.
• B)A $3,000 short-term capital loss.
• C)A $3,000 § 1231 loss.
• D)A $3,000 ordinary loss.
• E)None of the above.

Comprehend the principle of parsimony in explaining scientific phenomena.

Identify the significance of operational definitions in empirical research.

Recognize the importance of empirical evidence over anecdotal evidence in supporting scientific claims.

Understand the concept and role of convenience samples in research.

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Definitions:

Camel Cigarette

A brand of cigarettes that was originally developed by the R.J. Reynolds Tobacco Company in the United States, known for its distinct packaging and marketing.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Advertisers

Entities that promote goods, services, or ideas through various media to persuade potential customers to respond or buy.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another, reflecting a preference based on perception of the brand's value.