Jeannie Purchased 1,000 Shares in Course Developers for $10,000 on August

question 51

Multiple Choice

Jeannie purchased 1,000 shares in Course Developers for $10,000 on August 11, 2014. The company went bankrupt on May 11, 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)May 11, 2015, short-term loss in 2015.

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