On August 10, 2003, an investor purchased 1,000 shares of Mauve Corporation for $30,000. On January 2, 2004, the stock became worthless. What is the recognized gain or loss and how is it classified?
a. $3,000 STCL.
b. $30,000 STCL.
c. $3,000 LTCL.
d. $30,000 LTCL.
e. None of the above.© BrainMass Inc. brainmass.com June 3, 2020, 7:27 pm ad1c9bdddf
b. $30,000 STCL. (ANSWER)
A capital gain is the difference between what you paid for an investment and what you received when you sold that investment. If ...
This solution is comprised of a detailed explanation to answer what is the recognized gain or loss and how is it classified.