How much is colin long-term capital gain upon sale

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Reference no: EM132053075

1. Colin receives a lump-sum distribution of employer securities (1,000 shares) from his stock bonus plan in Year 1 worth $140,000 ($140 per share). The total value of his employer contributions over the years was $30,000. Colin sells all of his distributed shares 3 months after he received it as a distribution from the qualified plan. He received proceeds of $150,000 from the sale. How much is Colin’s long-term capital gain upon sale?

a. $110,000

b. $120,000

c. $30,000

d. $40,000

2. Kathy has an account balance in her employer’s cash profit sharing plan of $100,000 (there is no CODA as part of the plan). The plan has a 2-6 graded vesting policy. She has been a participant for three and a half years and has worked for the company for five years. Assuming the plan permits loans, what is the maximum loan that Kathy could take from the plan?

a. $20,000

b. $30,000

c. $40,000

d. $50,000

Reference no: EM132053075

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