This year Bill purchased 1,000 shares of Cain common stock for $12 per share. At year-end the
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Question:
This year Bill purchased 1,000 shares of Cain common stock for $12 per share. At year-end the Cain shares were worth $32 per share. What amount must Bill include in income this year?
A) $12,000
B) $20,000
C) $32,000
D) Bill can deduct $12,000 because his cost is a return of capital.
E) None of the above - Bill has not realized any gain.
Related Book For
Principles of Taxation for Business and Investment Planning 2016 Edition
ISBN: 9781259549250
19th edition
Authors: Sally Jones, Shelley Rhoades Catanach
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