Which of the Following Transactions Is a Taxable Event? (Assume

Multiple Choice

Which of the following transactions is a taxable event? (Assume that the condition of being substantially identical is determined in terms of rate of return and fair market value.)

A) Conversion of bonds into stock under a conversion privilege contained in the bond instrument
B) Exchange of substantially identical bonds of state or municipal governments
C) Exchange of substantially identical stocks of publicly held corporations
D) Conversion of stock into some other stock of the same corporation pursuant to a right granted under the stock certificate