Amy,a Single Individual and Sole Shareholder of Brown Corporation,sold All

question 70

Multiple Choice

Amy,a single individual and sole shareholder of Brown Corporation,sold all of the Brown stock for $30,000.The stock basis was $150,000.Amy had owned the stock for 3 years.Brown Corporation meets the Section 1244 requirements.Amy has

• A)a $50,000 ordinary loss and $70,000 LTCL.
• B)a $50,000 STCL and a $70,000 LTCL.
• C)a $100,000 ordinary loss and a $20,000 LTCL.
• D)a $100,000 LTCL and a $20,000 ordinary loss.

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Definitions:

Interest Rate

The levy, stipulated as a percentage of the principal, made by lenders for borrowers employing their assets.

Account Balance

The amount of money present in a financial repository, such as a checking or savings account, at any given time.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage rate.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals or businesses.