An affiliate of an issuer that holds control stock for five months sells 1,000 shares for a $10,000 profit. How will this transaction be treated

The Profit will be given to the insurer after been removed from the affiliate .

Explanation:

Based on the information given this transaction be treated by removing the profit which is the amount of $10,000 from the affiliate which is an affiliate of the insurer and then given the insurer the profit amount of $10,000 which was removed from the affiliate reason been that the control stock was been holds by the affiliate for five months in which it was later sold which means that the control stock was sold before the six month holding period.

Therefore the Profit will be given to the insurer after been removed from the affiliate .

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy