Question
On April 16, 20x1, Spencer purchases a regulated futures contract for $1,500.He sells it on October 15, 20x1 for a loss of $200. On November
On April 16, 20x1, Spencer purchases a regulated futures contract for $1,500.He sells it on October 15, 20x1 for a loss of $200. On November 1, 20x1, he purchases a substantially identical regulated futures contract for $1,400.On December 31, 20x1, the open contract has a fair market value of $1,450.
What taxable income will Spencer recognize in 20x1?
a.$50 IRC Sec. 1256 gain
b.$150 IRC Sec. 1256 loss
c.$200 short-term capital loss
d.$100 short-term capital loss
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
