42. What amount of income is recognized if the holding period requirement is not met for stock acquired through an employee stock purchase plan?

a. Short-term capital gain equal to the difference between the option price and the fair market value of the stock on the exercise date.

b. Ordinary income equal to the difference between the option price and the fair marker value of the stick on the exercise date

c. Short-term capital gain equal to the difference between the option price and the price of the stock at the time of exercise

d. Ordinary income equal to the difference between the option price and the price of the stock at the time of exercise

43. In 2015, Elena purchased two shares of common stock in biotechnology firm. Elena paid 70 for one share and 90 for the next share. Later in the year, the company declared a 2 for 1 common stock split. Elenas new basis in the stock shares is

a. Average of 4 shares at 40 a share

b. Two shares at 70 a share and two shares at 90 a share

c. Four shares at 160 a share

d. Two shares at 35 a share and two shares at 45 a share

44.Sara purchases 100 shares of Novell stock for 12 a share on September 12, 2014. On August 28, 2015, the price had fallen to 9. Concerned that the price might decline further, Sara sold all her share that day. On September 25, 2015, she re-purchased the stock when it was 11 a share. What is Saras 2015 capital gain or loss on theses transactions?

a. 0

b. 100 short-time loss

c. 300 long-term loss

d. 300 short-term loss

.45. In 2013, Nick purchased 100 shares of Delta Company stock for 10 per share. In 2014, Nick purchased an additional 100 shares of Delta Company for 15 per share. At the end of 2015, Delta company declared a 2 for 1 common stock split. What is Nicks total basis in his Delta Company Stock?

a. 1,250

b. 2,500

c. 2,750

d. 5,000

46. Adam purchased a put option for 400. The option expired on August 21,2015. What should Adam report on his 2015 return?

a. 400 of investment expense

b. no gain or loss

c. 400 of capital gain

d. 400 of capital loss