Question 1
Unlike an individual taxpayer, the corporate taxpayer does not utilize the 25% and 28% specialty capital gain rates, but it does apply the 15% tax rate to adjusted net capital gain.
◦ true
◦ false
Question 2
On January 31 of the current year, Sophia pays $1,000 for an option to acquire 100 shares of Texas Corporation common stock for $105 per share at any time prior to December 31. As of December 31, Sophia had not exercised the option or sold it. Which of the following statements is correct?
◦ Sophia may recognize a $1,000 STCL.
◦ Sophia may recognize a $1,000 LTCL.
◦ Sophia may recognize a $1,000 ordinary income.
◦ Sophia may not recognize a loss.