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Options
- A
It will be the book value recorded in books of account of stock as on date of conversion
- B
It will be the value at which capital asset is recorded in books of account
- C
It will be the cost of stock in trade
-
It will be the Fair Market Value of stock as on date of conversion
Correct answer
Why this is the answer
The cost of acquisition for such conversion is the FMV of the stock on the date of conversion, which is used for capital gains calculation.
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