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NEW QUESTION: 1
In 2004, your Uncle Oscar purchased 300 shares of Hasbro, Inc. for $19 a share. Uncle Oscar died earlier year and left his Hasbro stock to you. The stock was selling for $44 on the day he died, but by the time you learned that you were the beneficiary of the stock, the price was $47. A month later, you notice that the stock is selling for $55 and decide to sell it.
What is the tax consequence of this sale to you?
A. $2,400 taxed as short-term capital gain income
B. $3,300, taxed as long-term capital gain income
C. $10,800, taxed as long-term capital gain income
D. None of the above is the correct tax consequence of this sale.
Answer: B
Explanation:
Explanation/Reference:
Explanation: If you sell Hasbro stock for $55 and it was selling for $44 on the day that your uncle died, the sale will result in $3,300 of taxable income, taxed to you as long-term capital gain income. Your cost basis is the price at which the stock was selling on the day your uncle died, $44, so your gain on the sale is ($55
- $44) x 300 shares = $3,300. Although you owned the stock for only a month, the IRS stipulates that capital gain (or loss) earned on the disposition of inherited investment property will be considered to be long-term capital gain, regardless of how long it is held by the beneficiary prior to its sale.
NEW QUESTION: 2
Which of the following characteristic is NOT true forWS-SecureConversation?
A. It uses derived keys to sign and encrypt the message
B. It uses a Security Context Token which contains a timeout
C. It uses asymmetric cryptography to encrypt a message
D. It uses WS-Trust protocol to establish a security context between the consumer and provider
Answer: C
NEW QUESTION: 3
Withdrawing Requisition puts the request in which of the following status?
Please choose the correct answer.
Response:
A. Denied
B. Composing
C. Submitted
D. Ordering
Answer: B
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