Carlota Owns 4% of Express Corporation and Has a Basis

question 70

Multiple Choice

Carlota owns 4% of Express Corporation and has a basis of $5,000 in her stock. During the year, Express distributes a $300,000 dividend. As a result of the dividend, Carlota has

• A)$12,000 of dividend income.
• B)$5,000 of dividend income and $7,000 of capital gain.
• C)$7,000 of dividend income and a $5,000 tax-free return of capital.
• D)$5,000 of dividend income, $5,000 tax-free return of capital, and a $2,000 capital gain.
• E)$7,000 capital gain.

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Definitions:

Women

Female human adults; also refers to issues, roles, and identities specific to female individuals in various contexts.

Post-Formal Cognitive Development

A stage of cognitive maturity where individuals are able to think abstractly, consider multiple viewpoints, and understand that issues can have complex resolutions.

Metacognition

Awareness and understanding of one's own thought processes, often referred to as "thinking about thinking."

Stage of Life Phenomenon

Refers to the distinct phases individuals pass through from birth to death, often characterized by specific developmental milestones.