Kevin Bought 200 Shares of Intel Stock on January 1

question 10

Multiple Choice

Kevin bought 200 shares of Intel stock on January 1, 2016 for $50 per share with a brokerage fee of $100. Then, Kevin sells all 200 shares for $75 per share on December 12, 2016. The brokerage fee on the sale was $150. What is the amount of the gain/loss Kevin must report on his 2016 tax return?

• A)$4,500
• B)$4,750
• C)$5,000
• D)$5,250
• E)None of these

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Definitions:

Emergency Situation

An unexpected and often dangerous event requiring immediate action to prevent or mitigate loss or damage.

Treadmill

An exercise machine used for walking or running while staying in one place.

Misrepresentation

The act of giving a false or misleading statement about a crucial fact in a transaction, leading to potential legal consequences.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, often resulting in harm or damage.