In 2007,Gaylord purchased 100 shares of stock of Chisel Corporation for $200 per share.In 2017,Gaylord sells all of the shares for $19,000.What are the effects of these events?
I.The capital recovery concept prevents the recognition of any income.
II.Gaylord reports $1,000 of ordinary income for tax year 2017.

Question

In 2007,Gaylord purchased 100 shares of stock of Chisel Corporation for $200 per share.In 2017,Gaylord sells all of the shares for $19,000.What are the effects of these events?
I.The capital recovery concept prevents the recognition of any income.
II.Gaylord reports $1,000 of ordinary income for tax year 2017.
​

Quizplus · Accepted Answer

The Answer of In 2007,Gaylord purchased 100 shares of stock of Chisel Corporation for $200 per share.In 2017,Gaylord sells all of the shares for $19,000.What are the effects of these events?
I.The capital recovery concept prevents the recognition of any income.
II.Gaylord reports $1,000 of ordinary income for tax year 2017.
​

In 2007,Gaylord Purchased 100 Shares of Stock of Chisel Corporation