Mitaya purchased 500 shares of Sundown Inc. ,common stock on December 13,2015,at a cost of $3,600.She paid a commission of $150 on the purchase.On February 18,2016,she received 250 shares of Sundown Inc. ,common stock as a tax-free dividend.Mitaya sells 600 shares for $3,700 on January 8,2017,and pays a $100 commission on the sale.Mitaya's gain (loss) on the sale is characterized as:
A) Long-term capital gain of $600.
B) Long-term capital gain of $500;short-term capital gain of $100.
C) Long-term capital gain of $100;short-term capital gain of $500.
D) Short-term capital gain of $600.
Correct Answer:
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