Classify the gain or loss on each of George's assets listed below using the following codes. Note: a code may be used once, more than once, or not at all.
-George regularly invests unneeded business cash in Eli Lilly common stock.He has bought 200 shares of stock on May 1 of each year from 1983 through 2009.Because of an urgent need for cash,he sells 100 shares of the stock at an $850 gain on March 28,2013.Because the stock is held in a brokerage account,he did not have any paper shares of stock to surrender.He merely told his broker to sell 100 shares.
A) Long-term capital
B) Short-term capital
C) Collectible gain
D) Section 1231
E) Section 1245
F) Section 1250
G) Ordinary income/loss
H) Nontaxable/nondeductible
Correct Answer:
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