26

Question 26 1 out of 1 points Several years ago, Mona retired from Fox, Inc., a national plastics supplier. When Mona retired, she had 1,000 shares of Fox, Inc. stock in her stock bonus pian. Fox, Inc. took deductions equal to $20 per share for the contributions made on Mona's behalf. At retirement, Mona took a lump-sum distribution of the employer stock. The fair market value of the stock at distribution was $35 per share. On July 15th of this year, Mona sold the stock for $40 per share. Which of the following will Mona report on her tax retum at the date she sels the Fox, Inc. stock?, Selected @4 Answer: $0 of ordinary income, S0 of short-term capital gain, $20,000 of long-term capital gain. Answers: 1. $20,000 of ordinary income, $20,000 of short-term capital gain. 2 $35,000 of ordinary income, $5,000 long-term capital gain. 3. $40,000 of ordinary income. @4 $0 of ordinary income, $0 of short-term capital gain, $20,000 capital gain. 5. None of the above.