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Put T for Taxable Income or N for Nontaxable Income

Question 71

Multiple Choice

Put T for Taxable income or N for Nontaxable income beside each item below as it normally would be treated for tax purposes.
-Sheryl sold 100 shares of ABC stock for $2,100 and 300 shares of XYZ stock for $8,900. She purchased the ABC stock four years ago for $1,200 and the XYZ stock two years ago for $9,100. What is the net effect of these sales on Sheryl's income?


A) $200 net gain
B) $700 net gain
C) $900 net gain
D) $1,100 net gain

Correct Answer:

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