A Worthless Security Had a Holding Period of 6 Months

question 96

Multiple Choice

A worthless security had a holding period of 6 months when it became worthless on December 10, 2018. The investor who had owned the security had a basis of $20,000 for it. Which of the following statements is correct?

• A) The investor has a long-term capital loss of $20,000.
• B) The investor has a short-term capital loss of $20,000.
• C) The investor has a nondeductible loss of $20,000.
• D) The investor has a short-term capital gain of $20,000.
• E) None of the above.

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Definitions:

Program Fidelity

The degree to which a program or intervention is delivered as originally intended or designed.

Program Implementation

The process of putting a planned program into action, ensuring that the intended services or interventions are delivered.

Planning Phase

A critical stage in a project or research where objectives are defined, methods are selected, and resources are allocated, setting the groundwork for successful execution.

Evaluation

The systematic process of determining the merit, worth, or value of something, often for the purpose of making decisions about possible improvements or the continuation of an intervention or program.