Hank Inherited Green Stock from His Mother When She Died

question 25

Multiple Choice

Hank inherited Green stock from his mother when she died. The mother had a tax basis of $366,000 for the Green stock when she died and the Green stock was worth $437,000 at the date of her death. Which of the statements below is correct?

• A) Hank's holding period for the Green stock includes his mother's holding period for the stock.
• B) Hank's holding period for the Green stock does not include his mother's holding period for the stock.
• C) Hank's holding period for the Green stock is automatically long term.
• D) b. and c.
• E) None of the above.

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Definitions:

Annual Rate

The percentage return on an investment or rate of interest per year, not accounting for the compounding of interest within that year.

Annual Withdraw

Annual Withdraw refers to the amount of money that is taken out of an investment or savings account each year.

Rate Of Return

The upturn or downturn in investment value over a pre-defined period, cast as a percentage of the cost at investment inception.

Years

A measure of time consisting of 365 days, or 366 in a leap year, used to calculate duration in various financial and scientific contexts.