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NEW QUESTION: 1

A. Option D
B. Option C
C. Option A
D. Option B
Answer: C

NEW QUESTION: 2
Click the Exhibit tab to view the exhibit.
A user is rearranging clips in the sequence as shown in the exhibit.
What happens when the user releases the mouse after clicking and dragging?

A. The clip will be inserted between the existing clips and the audio will be split and moved.
B. The clip will overwrite the existing clip.
C. The clip will be inserted between the existing clips.
D. The clip will overwrite the existing clip and the audio will be split and moved.
Answer: A

NEW QUESTION: 3
Tex Payor bought 1,500 shares of the Bonds4U Mutual Fund, a no load fund, on June 12th for $28 a
share and sold the shares the following year on June 11th for $40 a share. This will result in which of the
following tax consequences for Tex?
A. Tex will have to pay tax on $40,000, taxed as ordinary income at his marginal tax rate.
B. Tex will have to pay tax on $18,000 of capital gain income, taxed at the preferential rate for long-term
capital gains.
C. Tex will have to pay tax on $40,000 of capital gain income, taxed at the preferential rate for long-term
capital gains.
D. Tex will have to pay tax on $18,000, taxed as ordinary income at his marginal tax rate.
Answer: D
Explanation:
If Tex bought 1,500 shares of Bonds4U at $28 on June 12th and sold the shares on June
1 1th the following year for $40 a share, Tex will have to pay tax on $18,000, taxed as ordinary income at
his marginal tax rate. He is taxed on his gain of $40 - $28 = $12 a share times 1,500 shares = $18,000.
For tax purposes, his holding period begins the day after his purchase, or June 13th in this example, and
ends the day on which sells the shares, or June 11th of the following year, in this case. Since this is less
than 12 months, the gain on the sale is considered to be a short-term capital gain, which is taxed as
ordinary income.