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NEW QUESTION: 1
As her college graduation present, Jennifer's grandmother gave her 200 shares of the stock of IBM. Her grandmother had purchased the shares for $54 a share in October 2002, and the stock was selling for
$132 a share on the day of Jennifer's graduation eight years later. Eight months after her graduation, Jennifer decides to sell the shares to get money to help with the down payment on a condo she is purchasing.
If IBM is selling for $125 on the day of the sale, what are the tax consequences of this sale for Jennifer?
A. Jennifer will have taxable income of $14,200, which will be taxed as long-term capital gain income at a tax-preferred rate.
B. Jennifer will have taxable income of $15,600, which will be taxed as long-term capital gain income at a tax-preferred rate.
C. Jennifer will have taxable income of $14,200, which will be taxed as long-term capital gain income at a tax-preferred rate.
D. Jennifer will have a loss of $1,400, which will be treated as a short -term capital loss for tax purposes.
Answer: C
Explanation:
Explanation/Reference:
Explanation: If Jennifer's grandmother gave her stock that she had purchased for $54 a share on a day it was selling for $132, and Jennifer then sold it eight months later for $125, Jennifer will have taxable income of $14,200, which will be taxed as long-term capital gain income at a tax-preferred rate. The cost basis of a gift is the price that the donor paid for it --$54, in this case. Jennifer's gain is, therefore, ($125 -
$54) x 200 shares = $14,200. The holding period of the donor also becomes the holding period for the gift's recipient, so the $14,200 will be treated as long-term capital gain income since her grandmother had owned the stock for eight years prior to gifting it.
NEW QUESTION: 2
Which of the following statements best describes the flooding of traffic on a PE when traffic is received on
a spoke SDP?
A. Traffic is flooded to all SAPs and mesh SDPs in the service.
B. Traffic is flooded to all SAPs in the service.
C. The traffic is not flooded.
D. Traffic is flooded to all SAPs and spoke SDPs in the service.
E. Traffic is flooded to all SAPs, spoke SDPs, and mesh SDPs in the service
Answer: E
NEW QUESTION: 3
Policing improves bandwidth utilization by using buffering to absorb high bursts of traffic.
A. TRUE
B. FALSE
Answer: B
NEW QUESTION: 4
DRAG DROP
Answer:
Explanation:
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