Victor Bought 100 Shares of Stock of Wabash Manufacturing Corporation

question 108

Multiple Choice

Victor bought 100 shares of stock of Wabash Manufacturing Corporation from an unrelated individual paying $1 per share on December 20,2012.On April 17,2013,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:

Introspection

The examination or observation of one's own mental and emotional processes.

Taking the Role

A concept in sociology that involves understanding or anticipating the expectations and reactions of others in social interactions.

Significant Other

A term used to describe a person's close and intimate partner, who holds great importance in their life.

Evoking Memories

The act or process of bringing past experiences to mind through stimuli that trigger recollection.