Sarah Had a $30,000 Loss on Section 1244 Stock,a $15,000

question 95

Multiple Choice

Sarah had a $30,000 loss on Section 1244 stock,a $15,000 loss on sale of a personal use automobile and a $8,000 loss on stock that is not classified as Section 1244.Without regard to net capital loss limitations,Sarah should recognize

• A)a ordinary loss of $38,000.
• B)a capital loss of $53,000.
• C)an ordinary loss of $30,000 and a capital loss of $8,000.
• D)an ordinary loss of $30,000 and a capital loss of $23,000.

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Definitions:

Adhes-

Prefix relating to or implying sticking, attachment, or adhesion, often used in medical terms.

Milli-

A prefix in the metric system denoting a factor of one thousandth (0.001) of the unit stated.

Axill-

A prefix denoting a relationship to the armpit or underarm area.

Chem/o

A combining form used in the fields of chemistry or pharmacology indicating a relation to chemicals or chemistry.