Kelly decided to invest in Lime, Inc common stock after reviewing Lime 's public disclosures, including recent financial statements and a number of press releases issued by Lime On August 7, 2011, Kelly purchased 60,000 shares of Lime for $210,000 In May 2012, Lime entered into a joint venture with...

Kelly should be concerned wi ...

Kelly decided to invest in Lime, Inc. common stock after reviewing Lime's public disclosures, including recent financial

Question:

Kelly decided to invest in Lime, Inc. after reviewing Lime's public disclosures, including recent and a number of press releases issued by Lime. On August 7, 2011, Kelly purchased 60,000 shares of Lime for $210,000. In May 2012, Lime entered into a joint venture with Cherry, Inc. In November 2012, the joint venture failed, and Lime's stock began to decline in value. In December 2012, Cherry filed a lawsuit against Lime for theft of corporate opportunity and breach of fiduciary responsibility. In February 2013, Lime filed a countersuit against Cherry for fraud and misappropriation of funds. At the end of December 2013, Kelly's stock in Lime was worth $15,000. Identify the relevant tax issues for Kelly?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...