Jeannie purchased 1,000 shares in Course Developers for $10,000 on August 11,2015.The company went bankrupt on May 11,2016 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?
A)May 11,2016,short-term loss in 2016.
B)December 31,2016,short-term loss in 2016.
C)December 31,2016,long-term loss in 2016.
D)December 31,2015 short-term loss in 2015.

Question

Quizplus · Accepted Answer

The stock is deemed worthless on December 31, 2016, and since Jeannie held the stock for more than a year, it is considered a long-term loss.

Jeannie Purchased 1,000 Shares in Course Developers for $10,000 on August