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:

Altruistic

Motivated by or showing concern for the well-being of others, often characterized by selfless actions or behaviors that benefit someone else.

Validation

The process of confirming that something is based on truth or fact or meets a particular standard or requirement.

Personal Utility

Personal Utility reflects the personal value or benefit an individual derives from using a product or service, based on their unique needs, preferences, or satisfaction.

Validation

The process of confirming the accuracy or legitimacy of something through the provision of evidence or logical support.