Answer:
D- All of the above
Explanation:
Edg. 2021, took the test and got 100 percent
Answer: Gwen should report a $3,000 long-term capital gain in her income tax return.
In this question the price paid by Gwen’s mother for the shares is irrelevant because of her death.
The stock’s fair market value ($20) when Gwen inherited the shares (21st October 2015) is Gwen stepped up value.
Gwen’s gain from selling the shares is:



Gwen inherited the shares on (21st October 2015) and held the shares until (3rd july 2017), so she held the shares for more than one year after inheriting it. So, she will report a long-term capital gain on her income tax return.
Answer: $100
Explanation:
Sometimes Debt instruments like Debentures and Bonds are convertible to shares in the company.
To calculate the Conversion Price, the following formula is used;
= Par Value / Conversion Ratio
= 1,000/10
= $100
Par value is usually $1,000 for such instruments.
Answer: C) an annualized salary, wage or incentive payment structure and a range of benefits.
Explanation: Employee compensation is the payment given to workers when they have a job.
A is wrong because there are more ways to pay someone. For example, benefits.
B is wrong because hourly workers are considered employees.
This leaves C as the only answer left. Some examples of benefits are child care and health care.