TXX5774

Decedent at death owned 400 shares of xyz having a value as reported on the NY stock exchange of $800 and for which he had paid $300.A federal estate tax was not required for the decedent's estate. The estate sells the 400 shares of XYZ Corporation for $500.

a. the estate recognizes neither capital gain nor loss on the sale.

b.the estate recognizes a short term capital loss on the sale.

c.the estate recognizes a long term capital loss of $300 on the sale.

d. the estate recognizes a short term capital loss of $500 on the sale.