Before Consideration of Stock Sales,Rex Has Generated $150,000 of AGI

question 107

Multiple Choice

Before consideration of stock sales,Rex has generated $150,000 of AGI this year due to salary,interest income and dividends.Rex is a single taxpayer.He plans to sell his shares of Trisco Inc. ,a qualifying small business corporation under Sec.1244,realizing a $110,000 loss.Due to the sale of the stock,he will reduce his AGI by

• A)$3,000.
• B)$110,000.
• C)$50,000.
• D)$53,000.