Elandra Purchased 500 Shares in Prompt Messenger Services for $12,000

question 96

Multiple Choice

Elandra purchased 500 shares in Prompt Messenger Services for $12,000 on November 21, 2014. The company went bankrupt on June 12, 2015, with no hope of recovery for the shareholders. On what date is the stock deemed to be worthless and what is the nature of the loss?

• A) December 31, 2014, short-term loss in 2014.
• B) December 31, 2015, short-term loss in 2015.
• C) December 31, 2015, long-term loss in 2015.
• D)June 13, 2015, short-term loss in 2015.

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Definitions:

Ethics Program

A structured system within organizations designed to guide behavior and decision-making according to established ethical standards.

Detecting Misconduct

The process of identifying and addressing unethical or illegal actions taken by individuals within an organization.

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Conducting evaluations and making decisions between alternatives that comply with moral values.

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The action of leading a group of people or an organization, or the ability to do this, which involves guiding, directing, and influencing others.