In September of 2018, Michelle sold shares of qualified small business stock for $1,000,000 that had a basis of $200,000. She had held the stock for 17 months. Forty-five days after the sale she purchased other qualified small business stock for $1,100,000. How much of the gain will she recognize?

A) $0
B) $100,000
C) $800,000
D) $900,000


A) $0

If the proceeds from the sale of small business stock held more than 6 months are reinvested in other small business stock within 60 days of the sale, no gain is recognized.

Business

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Bill is injured when his new motorcycle speeds out of control because of a defective part. In most jurisdictions, Bill

a. can sue the motorcycle manufacturer even though he does not have privity. b. cannot sue the motorcycle manufacturer because his injuries are personal injuries as opposed to economic loss. c. cannot sue the motorcycle manufacturer because the law requires arbitration. d. cannot sue the motorcycle manufacturer because there is no privity of contract.

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Fill in the blank(s) with the appropriate word(s).

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a. True b. False Indicate whether the statement is true or false

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