MENU
For a cash basis taxpayer, gain or loss on a year-end sale of listed stock arises on the:
Suggested Answer: A
Get Premium CPA-Regulation Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
Choice 'a' is correct. Trade date.
Gain or loss on a year-end sale of listed stock arises on the trade date.
Rule: Whether on the cash or accrual method of accounting taxpayers who sell stock or securities on an established securities market must recognize gains and losses on the trade date, rather than on the settlement date.
Choices 'b', 'c', and 'd' are incorrect, per the above rule.
8 comments · newest first
JO
Joye
11 months ago
I agree, cash proceeds are key for reporting gains or losses.
JO
Joseph
12 months ago
Wait, really? I didn't know cash basis taxpayers worked like that.
MA
Marge
12 months ago
No way, it's all about the settlement date!
ZA
Zana
12 months ago
I thought it was the trade date?
AL
Allene
1 year ago
It's definitely the date of receipt of cash proceeds.
VE
Vernice
1 year ago
This question seems straightforward, but I want to make sure I understand the key details. I'll need to carefully read through the options and think about the implications of each approach.
ST
Stevie
1 year ago
I'm a bit confused by the wording of these options. They don't seem to directly address the key components of an effective IT Service Continuity plan. I'll need to think about this one a bit more carefully before answering.
JI
Jimmie
1 year ago
Okay, I've got this. The two parts of the AccessKey are the Access Key ID and the Access Key Secret. I'm confident those are the correct answers.