Pidgeon, Inc No Net Section 1231 Losses Have Been Deducted as Ordinary

question 37

Multiple Choice

Pidgeon, Inc. has the following gains and losses from Section 1231 property during 2018:
?
$$\begin{array} { l c } \text { Casualty losses } & \$ ( 4,000 ) \\\text { Casualty gains } & 5,000 \\\text { Section } 1231 \text { gains } & 6,000 \\\text { Section } 1231 \text { losses } & ( 3,000 ) \end{array}$$
No net Section 1231 losses have been deducted as ordinary losses in prior years. How much of the 2018 Section 1231 gains and losses are recognized as long-term capital gains?

• A)$- 0 -
• B)$1,000
• C)$3,000
• D)$4,000
• E)$6,000

Understand how dividends affect the financial statements and how they are recorded in journals.

Grasp the concept and accounting treatment of stock splits and their effect on par value and number of shares.

Understand the process and implications of declaring and paying dividends.

Distinguish between different dates related to dividends such as date of declaration, date of record, and date of payment.

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Definitions:

Haldol

A medication commonly used to treat psychotic disorders, known generically as haloperidol.

Risperdal

A brand name for risperidone, an antipsychotic medication used to treat various mental health conditions.

Positive Symptom

Features that are present in individuals with a condition but are absent in healthy individuals, such as hallucinations or delusions often seen in schizophrenia.

Hallucinations

Experiencing sights, sounds, or other sensations that are not present or not perceived by others.