Classify the Gain or Loss on Each of George's Assets

question 97

Multiple Choice

Classify the gain or loss on each of George's assets listed below using the following codes. Note: a code may be used once, more than once, or not at all.
-George regularly invests unneeded business cash in Eli Lilly common stock. He has bought 200 shares of stock on May 1 of each year from 1987 through 2017. Because of an urgent need for cash, he sells 100 shares of the stock at an $850 gain on March 28, 2018. Because the stock is held in a brokerage account, he did not have any paper shares of stock to surrender. He merely told his broker to sell 100 shares.

• A)Long-term capital
• B)Short-term capital
• C)Collectible gain
• D)Section 1231
• E)Section 1245
• F)Section 1250
• G)Ordinary income/loss
• H)Nontaxable/nondeductible

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Definitions:

Resettlement Administration

A New Deal agency created in 1935 to relocate struggling urban and rural families to communities planned by the federal government.

Dorothea Lange

A prominent American documentary photographer and photojournalist best known for her work during the Great Depression, capturing the impacts on American society.

The Two Fridas

A double self-portrait by Mexican artist Frida Kahlo, depicting two versions of herself sitting side by side, with symbolic imagery reflecting her personal struggles and cultural identity.

Frida Kahlo

A Mexican painter known for her many portraits, self-portraits, and works inspired by the nature and artifacts of Mexico, combining realism with fantasy.