Shen purchased corporate stock for $20,000 on april 10, 2015. on july 14, 2017, when the stock was worth $12,000, shen died and his son, mijo, inherited the stock. mijo sold the stock for $14,200 on november 12, 2017. what is the amount and character of mijo's gain or loss?

Question

Business

Caitlin Eaton

7 May, 21:56

Shen purchased corporate stock for $20,000 on april 10, 2015. on july 14, 2017, when the stock was worth $12,000, shen died and his son, mijo, inherited the stock. mijo sold the stock for $14,200 on november 12, 2017. what is the amount and character of mijo's gain or loss?

+1

Answers (1)

Know the Answer?

Maddie · Answer 1

Mijo made $2,200 profit. The initial investment had nothing to do with him therefore it is not considered his loss because the initial investment did not belong to him. Once he inherited the stock at $12,000 his personal profit/loss began to occur. Also the character of the profit would be not a fixed remuneration becauae of the flux of the markets, fees, etc.