A Worthless Security Had a Holding Period of 6 Months

question 46

Multiple Choice

A worthless security had a holding period of 6 months when it became worthless on December 10,2015.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:

Urban Population

The segment of a country's population that resides within towns and cities as defined by governmental standards.

Population Growth

An increase in the number of people that reside in a country or region over a specific period of time.

Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation and communication systems, water and power lines, and public institutions like schools and hospitals.

Cellular Phones

Mobile phones that operate over a cellular network, allowing for voice and data communication without a physical wired connection.