Amy,a Single Individual and Sole Shareholder of Brown Corporation,sold All

question 57

Multiple Choice

Amy,a single individual and sole shareholder of Brown Corporation,sold all of the Brown stock for $30,000.Amy's stock basis was $150,000.She had owned the stock for 3 years.Brown Corporation meets the Section 1244 requirements.Amy has

• A)a $50,000 ordinary loss and $70,000 LTCL.
• B)a $50,000 STCL and a $70,000 LTCL.
• C)a $100,000 ordinary loss and a $20,000 LTCL.
• D)a $100,000 LTCL and a $20,000 ordinary loss.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Feed Himself

The act of an individual eating or consuming food without assistance from others.

Extinction

In behavioral psychology, the process by which a previously learned response decreases in frequency or disappears when reinforcement is withheld.

Inhibition

A psychological or physiological process that decreases or suppresses certain behaviors, emotions, or actions.