Cheryl purchased 500 shares of Qualified Small Business Stock (QSB)for $900,000 on March 2,2010.On November 29,2016,she sells the stock for $1,000,000.Cheryl also sells 100 shares of stock she acquired two years ago realizing a loss of $10,000.Cheryl has $100,000 of other income.Which of the following statements about the stock sale is/are true?
I.The tax paid on Cheryl's two stock sales is $6,300.
II.Cheryl can only deduct $3,000 of the $10,000 loss on the sale of the stock.

Question

Cheryl purchased 500 shares of Qualified Small Business Stock (QSB)for $900,000 on March 2,2010.On November 29,2016,she sells the stock for $1,000,000.Cheryl also sells 100 shares of stock she acquired two years ago realizing a loss of $10,000.Cheryl has $100,000 of other income.Which of the following statements about the stock sale is/are true?
I.The tax paid on Cheryl's two stock sales is $6,300.
II.Cheryl can only deduct $3,000 of the $10,000 loss on the sale of the stock.
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Quizplus · Accepted Answer

The Answer of Cheryl purchased 500 shares of Qualified Small Business Stock (QSB)for $900,000 on March 2,2010.On November 29,2016,she sells the stock for $1,000,000.Cheryl also sells 100 shares of stock she acquired two years ago realizing a loss of $10,000.Cheryl has $100,000 of other income.Which of the following statements about the stock sale is/are true?
I.The tax paid on Cheryl's two stock sales is $6,300.
II.Cheryl can only deduct $3,000 of the $10,000 loss on the sale of the stock.
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Cheryl Purchased 500 Shares of Qualified Small Business Stock (QSB)for