Question

Mrs. Y owns 1,800 shares of Acme common stock, which she purchased for $10 per share in 2002. In October, she decides to sell her Acme stock for the market price of $27 per share, the highest price at which the stock has traded in the last 22 months. A friend advises her to hold the Acme stock until next January so that her gain from the sale will be taxed next year rather than this year.

Answer 1

The question is incomplete but Mrs Y should not wait for next year to sell her shares because the share price could drop as this current share price is the highest price the shares have traded in the last 22 months. The aim here is to get the highest gain on shares.

Step-by-step explanation: