Question

During the current year, all of the following events occurred: On June 1, Ben Rork sold 500 shares of Kul Corp. stock. Rork had received this stock on May 1 as a bequest from the estate of his uncle, who died on March 1. Rork’s basis was determined by reference to the stock’s fair market value on March 1. Rork’s holding period for this stock was ______-.

Answer 1

The correct answer is Long-term.

Step-by-step explanation:

The provision is to assess the holding period of a deceased uncle's condition for the inventory obtained as a bequest. Assets inherited from a decent person shall be deemed to be owned for a long time regardless of the actual period of time the decedent or beneficiary actually held the assets and shall be treated as having it for more than twelve months.