Sam and Steve Have Equal Interests in the Capital and Profits

question 17

Multiple Choice

Sam and Steve have equal interests in the capital and profits of the S&S Partnership and are unrelated.On August 31,2011,Sam sold 250 shares of Tourmaline Corporation to the partnership for its fair market value of $7,500.Sam had bought the stock in 2000 at a cost of $12,000.What is Sam's deductible loss for 2011 as a result of the sale of this stock?

• A)$0
• B)$2,250 long-term capital loss
• C)$4,500 long-term capital loss
• D)$2,250 ordinary loss
• E)$4,500 ordinary loss

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Definitions:

Psychodynamically Oriented

Relating to an approach in psychology that emphasizes systematic study of psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experiences.

Traumatic Events

Incidents that cause psychological, physical, or emotional harm or distress, often leading to long-term impacts on an individual's well-being.

Maladaptive Patterns

Behaviors or ways of thinking that were initially adaptive but have become counterproductive in new contexts.

Couples and Family Therapists

Professionals who specialize in treating emotional, psychological, and interpersonal issues within relationships and family systems.