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Ben purchased $200,000 of qualified small business stock in 2008 and sold it in 2022 for a realized gain of $14 million. Which of the
| Ben purchased $200,000 of qualified small business stock in 2008 and sold it in 2022 for a realized gain of $14 million. Which of the following statements is true regarding the tax consequences of this sale? | |||||
| a. The gain recognized is $7 million. | |||||
| b. The eligible gain is $14 million. | |||||
| c. The LT15/20 gain is $4 million. | |||||
| d. All recognized gain is LT28 gain. | |||||
| e. None of the answers provided is correct. |
The answer is C so I need the explanation.
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Advanced Financial Accounting
Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King
5th Edition
0072444126, 978-0072444124
