Question

A customer has purchased 5,000 shares of ABC corporation stock in lots of 100 shares over an extended period of time at varying prices. The customer now sells 500 of the shares. Which statement is TRUE

Answer 1

c. IRS rules allow the taxpayer to specify which shares being sold

Step-by-step explanation:

Given that

Number of shares purchased = 5,000

Number of lots for shares = 100

The Number of shares sold = 500

based on the above information,

According to the internal service revenue (IRS) the taxpayer should be permitted to specify that shares which are sold i.e 500 shares so the same is to be considered

hence, the option c is correct