Karen Purchased 100 Shares of Gold Corporation Stock for $11,500

question 81

Multiple Choice

Karen purchased 100 shares of Gold Corporation stock for $11,500 on January 2, 2018. During 2018, she sells 25 shares of the 100 shares purchased on January 2, 2018, for $2,500. Twenty-five days earlier, she had purchased 30 shares for $3,000. What is Karen's recognized gain or loss on the sale of the stock, and what is her basis in the 30 shares purchased 25 days earlier?

• A) $375 recognized loss, $3,000 basis in new stock.
• B) $0 recognized loss, $3,000 basis in new stock.
• C) $0 recognized loss, $3,375 basis in new stock.
• D) $0 recognized loss, $3,450 basis in new stock.
• E) None of the above.

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Definitions:

Against Persons

Legal actions or claims directed towards individuals, as opposed to property or the state.

Comparative Negligence

A legal doctrine that apportions damages according to the degree of fault or negligence found against each party in a lawsuit.

Contributory Negligence

A legal doctrine where if the plaintiff in a tort claim is found to have contributed to their own harm, they may be barred from recovering damages.

Last Clear Chance

A legal doctrine that states that a party who has the last opportunity to avoid an accident, despite the negligence of the opposing party, may be liable for any resulting damages.