Question

For the scenario described (d. $-0- $-0- $39,000), what is Paula's basis for the stock after the transaction?

A) $-0-
B) $7,000
C) $32,000
D) $39,000

Answer 1

Paula's basis for the stock after the transaction, given the scenario provided, would be the total amount she paid for it, which is $39,000.

Step-by-step explanation:

The scenario given describes a financial transaction involving stocks. In the context provided, it seems that Paula's basis for the stock after the transaction is the key question. This term 'basis' typically refers to the initial amount of money invested in an asset for tax purposes and is used to determine capital gains or losses upon the sale of the asset. The scenario (d. $-0- $-0- $39,000) suggests there were no initial initial investments or costs (represented by $0) until the transaction that resulted in $39,000. Therefore, assuming that $39,000 is the total amount paid for the stock, the answer would be D) $39,000, which is the cost basis of the stock post-transaction.