Mike, a dealer in securities and calendar-year taxpayer, purchased a security for inventory on November 18, 2013 for $15,000. The FMV on December 31, 2013 was $16,000. The security was sold on December 19, 2014 for $16,500. These transactions result in
A) $0 ordinary income in 2013; $1,500 ordinary income in 2014.
B) $0 ordinary income in 2013; $1,500 LTCG in 2014.
C) $1,000 ordinary income in 2013; $500 LTCG in 2014.
D) $1,000 ordinary income in 2013; $500 ordinary income in 2014.
Answer: D
Finance
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