Stacy,who Is Married and Sole Shareholder of ABC Corporation,sold All

question 40

Multiple Choice

Stacy,who is married and sole shareholder of ABC Corporation,sold all of her stock in the corporation for $100,000.Stacy had organized the corporation in 2009 by contributing $225,000 and receiving all of the capital stock of the corporation.ABC Corporation is a domestic corporation engaged in the manufacturing of ski boots.The stock in ABC Corporation qualified as Sec.1244 stock.The sale results in a(n)

• A)ordinary loss of $125,000.
• B)long-term capital loss of $125,000.
• C)long-term capital loss of $100,000 and ordinary loss of $25,000.
• D)ordinary loss of $100,000 and long-term capital loss of $25,000.