All of the Following Are True of Losses from the Sale

question 111

Multiple Choice

All of the following are true of losses from the sale or worthlessness of small business corporation (Section 1244) stock with the exception of

• A)the stock must be owned by an individual or a partnership.
• B)the stock must have been issued by a domestic corporation.
• C)the stock must have been issued for cash or property other than stock or securities.
• D)a single taxpayer may deduct,as ordinary losses,up to a maximum of $100,000 per tax year with the remainder treated as capital losses.

---

Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period after accounting for purchases and sales.

Understatement

An error in financial reporting where the value of a figure is reported lower than its actual amount.

Inventory Turnover

A measure of how frequently a company's inventory is sold and replaced over a period.