Stacy,who Is Married and Sole Shareholder of ABC Corporation,sold All

question 40

Multiple Choice

Stacy,who is married and sole shareholder of ABC Corporation,sold all of her stock in the corporation for $100,000.Stacy had organized the corporation in 2009 by contributing $225,000 and receiving all of the capital stock of the corporation.ABC Corporation is a domestic corporation engaged in the manufacturing of ski boots.The stock in ABC Corporation qualified as Sec.1244 stock.The sale results in a(n)

• A)ordinary loss of $125,000.
• B)long-term capital loss of $125,000.
• C)long-term capital loss of $100,000 and ordinary loss of $25,000.
• D)ordinary loss of $100,000 and long-term capital loss of $25,000.

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Definitions:

Uninterested

describes a lack of interest or concern about something or someone.

Actor-Observer Effect

A psychological phenomenon where people tend to attribute their own actions to external factors while attributing others' actions to internal characteristics.

Videotaped Conversation

A recorded interaction between individuals on video, used for analysis or study.

Equal Participation

The concept that all members of a group have the same opportunity and responsibility to contribute to a process or activity.