Ralph and Yolanda Purchased 20% of the Initial Offering of Major

question 99

Multiple Choice

Ralph and Yolanda purchased 20% of the initial offering of Major Corporation common stock for $150,000. Major Corporation is a qualifying small business corporation and the stock qualifies as Sec. 1244 stock. Ten months later, Major Corporation files for bankruptcy and the shareholders are notified that the stock is worthless. Ralph and Yolanda, who are married and file a joint return, have a

• A)$150,000 ordinary loss.
• B)$150,000 capital loss.
• C)$100,000 ordinary loss; $50,000 capital loss.
• D)$100,000 ordinary loss; $50,000 ordinary loss carryforward.

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Definitions:

Negatively Affected

Being impacted in an adverse or detrimental manner, often resulting in decreased performance or well-being.

Constructive Conflict

The positive and productive resolution of differences and disagreements that contributes to the goals and success of a group or organization.

Positive Application

The act of applying a concept, principle, or method in a way that results in beneficial or favorable outcomes.

Organizational Conflict

A disagreement or discord arising within an organization due to differing interests, goals, or values among members.