Lucia Owns 100 Shares of Cronco Inc

question 118

Multiple Choice

Lucia owns 100 shares of Cronco Inc.which she purchased on December 1 of last year for $10,000.The stock is not Sec.1244 stock.On July 1 of the current year,Lucia receives notice from the bankruptcy court that Conco Inc.has been liquidated,and there are no assets remaining for shareholders.As a result,Lucia will have

• A)a short-term capital loss of $10,000.
• B)a long-term capital loss of $10,000.
• C)an ordinary loss of $10,000.
• D)no loss allowed.

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Definitions:

Output Winding

The coil or winding in an electrical machine from which the output is derived.

Primary

Refers to the first or main part of a system or device, such as the primary winding in a transformer which receives the initial electrical energy.

Tertiary

Pertaining to the third order, level, or stage in a sequence or hierarchy.

Tape-Wound Core

A core used in transformers and inductors, made by winding a tape of thin steel around a form, enhancing magnetic properties.