Darnell, Who Is Single, Exchanges Property Having a $60,000 Adjusted

question 89

Essay

Darnell, who is single, exchanges property having a $60,000 adjusted basis and a $50,000 FMV for 1,000 shares of Fox Corporation stock in a transaction qualifying under Sec. 351. The stock qualifies as Sec. 1244 stock. If Darnell sells his stock for $30,000, what is the amount and character of his recognized gain or loss?

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Definitions:

Organism's Behavior

The observable actions or reactions of living entities in response to external or internal stimuli.

Systematic Desensitization

A behavior therapy used to reduce phobic and anxiety responses through gradual exposure to the feared stimulus, paired with relaxation exercises.

Complex Behaviors

Actions or reactions that involve a combination of skills and attributes such as emotional, cognitive, and social components, resulting in intricate or complicated responses to stimuli.

Flooding

A therapeutic technique used in behavioral therapy to treat phobias and anxiety, involving prolonged exposure to a feared object or situation until the fear response is extinguished.