Elandra purchased 500 shares in Prompt Messenger Services for $12,000 on November 21,2013.The company went bankrupt on June 13,2014,with no hope of recovery for the shareholders.On what date is the stock deemed to be worthless and what is the nature of the loss?

Question

Quizplus · Accepted Answer

The stock is deemed worthless at the end of the year in which it becomes worthless, which is December 31, 2014. Since Elandra held the stock for more than a year, it is a long-term loss.

Elandra Purchased 500 Shares in Prompt Messenger Services for $12,000