1. Efrain owns 1,000 shares of RJ Inc. common stock which he purchased three years ago for $36,000. Efrain sells the 1,000 shares on October 15, 2023, for $10,000. On November 12, he purchases 400 shares of RJ Inc. preferred stock for $8,000. Efrain's recognized loss on the sale of the 1,000 shares will be 31) ______

A) $10,400. B) $26,000. C) $15,600. D) $0.

2. This year, Jonathan sold some qualified small business stock that he acquired in December 2010. His basis in the stock was $100,000 and he sold it for $400,000, resulting in a $300,000 gain. How much of Jason's gain is taxable?

A) $75,000 B) $150,000 C) $0 D) $300,000

3. How long must a capital asset be held to qualify for long-term treatment?

A) one year B) same trade date one year from purchase

C) 6 months D) one year and one day