Annette purchased stock on March 1, 2019, for $200,000. At December 31, 2019, it was worth $210,000. She also purchased a bond on September 1, 2019, for $20,000. At year-end, it was worth $15,000. Determine Annette’s realized and recognized gain or loss.
What will be an ideal response?
Annette's realized gain or loss is zero and her recognized gain or loss is zero. Since a sale or other disposition has not occurred, there is no realization or recognition on either the stock or the bond.
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A) 8 B) 9 C) 10 D) 12
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