Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 52

Alton received a Form 1099-B that shows a net sales price of $2,500 on the sale of 600 shares of FNP Company. He bought the stock on October 21, 2009, and sold it on October 22, 2010. His basis in the stock is $1,875, of which $25 is a commission fee. What is the amount and nature of Alton's gain? a. $625 short-term gain.
B) $650 short-term gain.
C) $625 long-term gain.
D) $650 long-term gain.