On December 10, 2018, an investor purchased 1,000 shares of Lion Corporation for $8,000. On March...
On December 10, 2018, an investor purchased 1,000 shares of Lion Corporation for $8,000. On March 2, 2019, the stock became worthless. What is the recognized gain or loss and how is it classified?
Group of answer choices
None of the above.
$3,000 STCL
$8,000 STCL
$8,000 LTCL
$3,000 LTCL
Homework Answers
|
As per section 165, when a stock becomes worthless, the last day of the tax year is the effective date. Therefore it is classified as 8,000 LTCL |
||
| OPTION C IS THE ANSWER |
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