Jeff owns 200 shares of Coca Cola common stock that have increased in value by $14 each. He must report the increase in income because a transaction has occurred.
A transaction has not occurred so income does not need to be recognized.

Question

Quizplus · Accepted Answer

The increase in value is considered a capital gain and does not need to be reported as income unless Jeff sells the shares and realizes the gain as a transaction.

Jeff Owns 200 Shares of Coca Cola Common Stock That