Joan bought a bond several years ago for $23,000, Today, the value has declined to $18,000. If Joan gifts the bond to her brother today, all the following statements are true except? A. If he sells the bond for $18,000 or less, his basis will be $18,000 and his holding period will be short-term. B. If he holds the bond for 6 months, the price recovers and he sells it for more than $23,000, his basis will be $23,000 and his holding period will be short-term. C. If he sells the bond for more than $18,000 but less than $23,000 there will be no gain whatsoever and the holding period won't matter. D. If he sells the bond in 10 months for $23,000 exactly, there will be no gain but the holding period will be long-term.

Joan bought a bond several years ago for $23,000, Today, the value has declined to $18,000. If Joan gifts the bond to her brother today, all the following statements are true except? A. If he sells the bond for $18,000 or less, his basis will be $18,000 and his holding period will be short-term. B. If he holds the bond for 6 months, the price recovers and he sells it for more than $23,000, his basis will be $23,000 and his holding period will be short-term. C. If he sells the bond for more than $18,000 but less than $23,000 there will be no gain whatsoever and the holding period won't matter. D. If he sells the bond in 10 months for $23,000 exactly, there will be no gain but the holding period will be long-term.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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