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Question 20 of 75.

The basis of mutual fund shares can be determined using all of the following methods EXCEPT: A) Average basis. B) Dividend reinvestment basis. C) First-in, first-out, without using an average basis. D) Specific share identification.

Question 21 of 75.

Which of the following taxpayers would most likely be considered a trader? A) Thomas trades during the summer when he is home from college. He consults with other traders and sells shares of stock before going back to college at the end of the summer. B) Kirk trades every day when they get home from work. They spend time researching companies and hold securities for a year or more before selling. C) Ryan trades nearly every day. He usually sells shares of stock after a few days, hoping to profit from short-term price changes. D) Abel trades two or three days a week. They like to invest in companies that pay regular dividends, although they sometimes sell after holding the stock for a few days.

Question 22 of 75.

Herman sold 200 shares of Wescon stock at a loss on October 23, 2021. He will be subject to the wash sale rule if he purchased, or repurchased, the shares on which of the following dates? A) September 20, 2021. B) September 30, 2021. C) November 27, 2021. D) November 30, 2021.

Question 23 of 75.

In 2021, Avi, a single taxpayer, had taxable income of $110,000. This amount included short-term capital losses of $2,000 and long-term capital losses of $12,000. He had no other capital transactions in prior years. What is Avi's capital loss carryover to 2022? A) $0; B) $9,000; C) $11,000; D) $14,000

Question 24 of 75.

In 2021, Bud purchased two shares of common stock in a biotechnology firm. Bud paid $110 for one share and $120 for the next share. Later in the year, the company declared a 2-for-1 common stock split. What is Bud's new basis in his shares of stock? A) Two shares at $55 a share and two shares at $60 a share. B) Four shares at $57.50 a share. C) Two shares at $110 a share and two shares at $120 a share. D) Four shares at $115 a share.

Question 25 of 75.

Each of the following statements regarding the reporting requirements for a transaction involving the sale of shares of stock is correct EXCEPT: A) A capital loss that is carried forward does not differentiate between short-term and long-term. B) For a transaction involving noncovered securities, short-term and long-term capital gains and losses are reported on Form 8949 and carried to Schedule D. C) Total capital gain or loss is computed by combining net short-term gains and losses and net long-term gains and losses. D) Under certain circumstances, short-term and long-term capital gains and losses may be aggregated and reported directly on Schedule D.

Question 26 of 75.

Nadine purchased the following shares of PixelGram, Inc. stock:

• 55 shares for $1,575.13 in 2018.
• 68 shares for $1,825.43 in 2019.
• 99 shares for $2,460.22 in 2020.

Nadine sold 133 shares of PixelGram, Inc. stock in 2021 and did not identify which shares she sold. What basis should she use for computing her gain or loss? A) $3,373; B) $3,511; C) $3,649; D) $3,809

Question 27 of 75.

Review the following scenario, then choose the response that correctly completes the last sentence. Jared purchased 300 shares of OXG stock on August 2, 2020, for $1,500. In October 2021, OXG issued a 10% stock dividend. Jared now owns 330 shares and his basis is: A) $1,350; B) $1,500; C) $1,650; D) $1,815

Question 28 of 75.

Each of the following represents one of the three general requirements that must be met to be considered a trader in securities for tax purposes EXCEPT: A) Activity must be substantial. B) Transactions must meet dollar amount guidelines. C) Transactions must be intended for short-term swings in the prices of securities. D) Transactions must be regular and continuous.

Question 29 of 75.

Fiona purchased 200 shares of Oxygon stock for $11 a share on August 11, 2020. On July 28, 2021, the price had fallen to $8. Concerned that the price might decline further, Fiona sold all her shares that day. She later regretted this move, and on August 7, 2021, she repurchased the stock when it was $10 a share. What is Fiona's 2021 capital gain or loss on these transactions? A) No gain or loss will be reported. B) $100 short-term loss. C) $200 short-term loss. D) $300 short-term loss.

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