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NEW QUESTION: 1
Answer:
Explanation:
NEW QUESTION: 2
What is an Overlay Transport Virtualization extended VLAN?
A. the VLAN that must contain the overlay interface
B. the user VLAN that exists in multiple sites
C. the VLAN used to access the overlay network by the join interface
D. the VLAN used to locate other AEDs
Answer: B
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 3
Wallace purchased 500 shares of Kingpin, Inc. 15 years ago for $25,000. Wallace has worked as an owner/employee and owned 40% of the company throughout this time. This year, Kingpin, which is not an S corporation, redeemed 100% of Wallace's stock for $200,000. What is the treatment and amount of income or gain that Wallace should report?
A. $175,000 long-term capital gain.
B. $0
C. $175,000 ordinary income.
D. $200,000 long-term capital gain.
Answer: A
Explanation:
Explanation
Choice "b" is correct. An investment in a capital asset (e.g., stock) results in the income being capital (either a capital loss or a capital gain). Ownership percentage is not a factor in the calculation, and, in this question, nor is the fact that the corporation is not an S corporation. The calculation is simple:
Wallace invested $25,000 in the stock and received $200,000 for 100% of his investment 15 years later.
The capital gain is $175,000 ($200,000 - $25,000), and it is considered long-term because the stock was held for greater than one year.
Choice "a" is incorrect. There is $175,000 of gain on the transaction ($200,000 - $25,000). This type of transaction is not a transaction that is excluded from tax in the tax code.
Choice "c" is incorrect. An investment in a capital asset (e.g., stock) results in the income being capital (either a capital loss or a capital gain). Although the calculation of the income is correct (i.e.,
$175,000), ordinary income is not the proper treatment for this transaction.
Choice "d" is incorrect. Although this transaction does result in a long-term capital gain, Wallace has basis in the stock ($25,000), and the gain is calculated as the proceeds from the sale ($200,000) less the basis in the stock.
NEW QUESTION: 4
Which of the following terms describe the possible state of a task?
A. Postponed
B. Suspended
C. Open
D. Available
E. Deferred
Answer: C,D,E
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