Accounting Question West LA College Accounting 015 Spring 2021 Midterm Exam Question 22

Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March 4 of the current year. His father paid $30 per share for the stock on September 2, 2005. The FMV of the stock on the date of death was $50 per share. On September 4 this year, the FMV of the stock was $55 per share. The executor did not elect the alternate valuation date. Monte sold the stock for $65 per share on December 3. What is the amount and nature of any gain or loss?

a. $ 35,000 LTCG

b. $ 15,000 STCG 

c. $ 15,000 LTCG

d. $ 10,000 LTCG