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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: A
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

A. Option C
B. Option A
C. Option D
D. Option B
Answer: A,C

NEW QUESTION: 3
Once a mashup has been activated and made visible on screens, what is the incorrect way to access it?
Please choose the correct answer.
Choose one:
A. A mashup can be displayed as an embedded screen.
B. You can click a link on the screen.
C. You can use Enterprise Search and access external search providers that are integrated there.
D. You can click Insert Services and choose the mashup.
Answer: D

NEW QUESTION: 4
According to the fundamental principles of Lean Management, errors result from:
A. Misjudgment made by project teams and operations staff.
B. Flaws in development and production systems.
C. Inadequate user requirements and documentation.
D. Insufficient management oversight of projects and operations.
Answer: B
Explanation:
Explanation/Reference:
Explanation:

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