Vanessa Bought 2,000 Shares of Glenco Stock When the Company

question 32

Essay

Vanessa bought 2,000 shares of Glenco stock when the company was first formed for $57,000. The company had $900,000 of total capital when formed and the stock qualified as Section 1244 stock. Vanessa sold the stock three years later for $3,000. If Vanessa is single, how much gain or loss does she have on the sale of the stock and how will it be treated by her?

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Definitions:

Proposition

A statement or assertion that expresses a judgment or opinion, in philosophy and logic, it's also seen as the meaning or content behind declarative sentences.

Analogical

Pertaining to analogy; the process of finding correspondences or logical relations between seemingly dissimilar things.

Directed Thinking

Thought that is focused, goal-oriented, and follows logical steps towards a specific conclusion.

Mental Set

The perspective that a person takes and the assumptions he makes in approaching a problem.