Jack has a basis of $36,000 in his 1,000 shares of Acorn Corporation stock (a capital asset).The stock was acquired three years ago.He receives the following distributions as part of a plan of liquidation of Acorn Corporation:
What are the amount and character of the gain or loss that Jack will recognize during 2009? During 2010?

Question

Jack has a basis of $36,000 in his 1,000 shares of Acorn Corporation stock (a capital asset).The stock was acquired three years ago.He receives the following distributions as part of a plan of liquidation of Acorn Corporation:
  What are the amount and character of the gain or loss that Jack will recognize during 2009? During 2010?

Quizplus · Accepted Answer

The Answer of Jack has a basis of $36,000 in his 1,000 shares of Acorn Corporation stock (a capital asset).The stock was acquired three years ago.He receives the following distributions as part of a plan of liquidation of Acorn Corporation:
  What are the amount and character of the gain or loss that Jack will recognize during 2009? During 2010?

Jack Has a Basis of $36,000 in His 1,000 Shares