Ben purchased $200,000 of qualified small business stock in 2008 and sold it in 2022...
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Accounting
Ben purchased $200,000 of qualified small business stock in 2008 and sold it in 2022 for a realized gain of $14 million. Which of the following statements is true regarding the tax consequences of this sale?
a. The gain recognized is $7 million.
b. The eligible gain is $14 million.
c. The LT15/20 gain is $4 million.
d. All recognized gain is LT28 gain.
e. None of the answers provided is correct.
The answer is C so I need the explanation.
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