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NEW QUESTION: 1
Tex Payor purchased 1,000 shares of Stocks4U, a mutual fund with a 5% front-end load, on February
2 6th.The fund's net asset value on that date was $30.40 and its offer price was $32.Tex sold his shares
on March 15th of the following year for $45 a share. What were the tax consequences for Tex?
A. Tex must pay taxes on $14,600, which will be taxed at a preferential long-term capital gain rate under
current tax law.
B. Tex must pay taxes on $45,000, which will be taxed at a preferential long-term capital gain rate under
current tax law.
C. Tex must pay taxes on $13,000, which will be taxed at a preferential long-term capital gain rate under
current tax law.
D. Tex must pay taxes on $14,600, which will be taxed as ordinary income at Tex's marginal tax rate.
Answer: C
Explanation:
If Tex purchased 1,000 shares of Stocks4U at its offer price of $32 on February 26th and
sold his shares the following year on March15th for $45 a share, he must pay taxes on $13,000, which will
be taxed at a preferential long-term capital gain rate under current tax law.
Tex's gain is calculated based on the price he paid for the shares, which included the front-end load, or
$ 32. Since he sold the shares for $45, his gain was $13 a share, or $13,000 for his 1,000 shares. His
holding period began the day after his purchase, or February 27th, and ended on the day he sold his
shares on March 15th. Since this is longer than twelve months, his gain will be taxed at a preferential
long-term capital gain rate under current tax law.
NEW QUESTION: 2
Which OSI/ISO layer defines how to address the physical devices on the network?
A. Data Link layer
B. Application layer
C. Transport layer
D. Session layer
Answer: A
Explanation:
The data link layer (layer 2) defines how to address the physical locations and/or devices on the network.
Source: HARRIS, Shon, All-In-One CISSP Certification Exam Guide, McGraw-
Hill/Osborne, 2002, chapter 7: Telecommunications and Network Security (page 352).
NEW QUESTION: 3
What should you implement to prevent multiple hosts from gaining access to the same LUN in a non clustered environment?
A. a valid LUN number for each host's WWN
B. LUN masking for each LUN using the host WWN
C. host-based zoning in the SAN fabric
D. a host operating system type and host UUID
Answer: B
NEW QUESTION: 4
When a PC boots, the operating system reports the incorrect day and year for a few minutes before it eventually displays the correct time. Which of the following should the technician do to fix this issue?
A. Set the date and time manually in the BIOS
B. Open the PC and replace the CMOS battery
C. Change the PC to use NTP for time synchronization
D. Change the time zone from UTC to the correct time zone
Answer: B
