Mitaya Purchased 500 Shares of Sundown Inc

question 14

Multiple Choice

Mitaya purchased 500 shares of Sundown Inc.,common stock on December 13,2014,at a cost of $3,600.She paid a commission of $150 on the purchase.On February 18,2015,she received 250 shares of Sundown Inc.,common stock as a tax-free dividend.Mitaya sells 600 shares for $3,700 on January 8,2016,and pays a $100 commission on the sale.Mitaya's gain (loss) on the sale is characterized as:

• A)Long-term capital gain of $600.
• B)Long-term capital gain of $500; short-term capital gain of $100.
• C)Long-term capital gain of $100; short-term capital gain of $500.
• D)Short-term capital gain of $600.

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