George purchases stock in Dodo Corporation in 2012 at a cost of $50,000. In 2016, he sells

Question:

George purchases stock in Dodo Corporation in 2012 at a cost of $50,000. In 2016, he sells the stock for $32,000. What is the effect of the sale of stock on George's taxable income? Assume that George sells no other assets in 2016.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...