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andriy [413]
2 years ago
14

In July, a customer invested $10,000 in the ABC Mutual Fund. In December of the same year, ABC announced a long-term capital gai

ns distribution. In May of the next year, the customer decided to redeem his shares for a capital gain. How are both of the capital gains treated for tax purposes
Business
1 answer:
mihalych1998 [28]2 years ago
4 0

Answer:

Capital gains distribution is treated as long term

Capital gain from from redemption is treated as short term

Explanation: Capital gains may be explained as the profit made from the sale of a property or investment. Depending on the holding duration of the stock or bond, a capital gain may be classed as short term is held for below one year or long-term, of held for more than 1 year. However, According to the Internal Revenue service regulation, Capital gains are taxed as long term irrespective of the holding period in which the owner has possessed the fund.

Capital gains redemption however, follows the usual time-line and in this case would be taxed as short-term because the holding period is between July to May, which is a 10 months. Since it hasn't exceeded a year, then, it is classed as short term.

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2 years ago
Suppose that the Federal Reserve decides to increase the money supply with a $300 purchases of Treasury bills. Complete the tabl
shutvik [7]

A $ 300

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<u>Explanation:</u>

To increase the money supply in the economy, the federal reserve should buy the treasury bills and this will increase the money supply in the economy, leading to more demand in the economy and therefore there will be growth and development of the economy.

With the increase in the purchase of the treasury bills by the federal reserve, the money supply will increase by $300.

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All of the following must be disclosed on municipal bond trade confirmation EXCEPT: A "In Whole" call dates B For revenue bonds,
Mashcka [7]

Answer:

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Explanation:

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vazorg [7]

Answer:

c. Mobile Retailing.

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Mobile retailing can be defined as the process of buying or shopping for goods and services through the internet by using a smartphone, mobile device or tablets. It is one of the convenient ways, potential customers use to engage in e-commerce.

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3 years ago
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