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For the following independent cases, determine whether economic income is present and, if so, whether it must be included in gross income (that is, is
For the following independent cases, determine whether economic income is present and, if so, whether it must be included in gross income (that is, is it realized and recognized for tax purposes?).Ben sold stock for $10,000 and paid sales commission of $250. Ben purchased the stock several years ago for $4,000. Answer:Economic income is present and has been realized through the sale. Return of capital limits the addition to gross income to the net gain on the sale, $5,750. Please show formula and process.
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