Which One of the Following Transactions Occurs in the Primary

question 45

Multiple Choice

Which one of the following transactions occurs in the primary market?

• A)Repurchase of GHI stock from Tim by GHI
• B)Tax-free gift of DEF stock to Heather by Jennifer
• C)Sale of ABC stock by Fred Jones to Mary Smith
• D)Initial sale of JKL stock by JKL to Jamie
• E)Transfer of MNO stock from Tom to his son,Jon

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Definitions:

Mortgage Interest

The interest charged on a loan used to purchase a residence, which can be deductible for taxpayers who itemize deductions on their income tax returns.

Property Taxes

Taxes assessed on real estate by local government, based on the property's assessed value.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Maintenance

The routine tasks and repairs conducted to keep equipment, buildings, or machinery in working order and prevent its deterioration.