Victor Bought 100 Shares of Stock of Wabash Manufacturing Corporation

question 129

Multiple Choice

Victor bought 100 shares of stock of Wabash Manufacturing Corporation from an unrelated individual paying $1 per share on December 20,2015.On April 17,2016,the corporation is declared bankrupt and the shares are deemed worthless.What is the amount and character of Victor's recognized loss as a result of the bankruptcy?

• A)$100 short-term capital loss.
• B)$100 long-term capital loss.
• C)$100 ordinary loss.
• D)No gain or loss until the stock is sold.
• E)The amount is $100, but the character is indeterminable from the information given.

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Definitions:

Stacked Column Chart

A graphical representation of data where multiple columns are placed on top of one another to indicate total values and the constituent parts.

Coefficient Of Determination

Represented as R-squared, it measures the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Sample Correlation

A measure that indicates the degree to which two variables change together, based on data drawn from a sample of the population.

Test Statistic

A value calculated from sample data during a statistical hypothesis test to determine the p-value or to compare against a critical value.