Decedent at death owned 400 shares of xyz having a value as reported on the NY s

Question

Decedent at death owned 400 shares of xyz having a value as reported on the NY stock exchange of $800 and for which he had paid $300.A federal estate tax was not required for the decedent’s estate. The estate sells the 400 shares of XYZ Corporation for $500.

a. the estate recognizes neither capital gain nor loss on the sale.

b. the estate recognizes a short term capital loss on the sale.

c. the estate recognizes a long term capital loss of $300 on the sale.

d. the estate recognizes a short term capital loss of $500 on the sale

Explanation / Answer

Answer :-

C. The estate recognises a long term capital loss of $300 on the sale

Explanation :- The value of shares valued in New York stock exchange is $800 but sells the shares of XYZ corporation is $500. Therefore the long term capital loss on sale of shares is $300 ($800 - $500).

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.