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.

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Definitions:

Double Helix

The structure of DNA, characterized by two intertwined strands forming a spiral shape, discovered by Watson and Crick.

Genotype

The genetic makeup of an organism, comprising all the alleles and genes within an individual's DNA.

Genetic Material

Genetic material constitutes the DNA (deoxyribonucleic acid) or RNA (ribonucleic acid) in living organisms that contains the biological instructions which determine an organism's physical characteristics, development, and functioning.

Double Helix

The structure of DNA, characterized by two twisted strands forming a shape similar to a spiral staircase.