Rex Has Generated $150,000 of AGI This Year Due to Salary,interest

question 103

Multiple Choice

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.Rex has not sold any other investment assets this year.Due to the sale of the Trisco stock,he will reduce his AGI by

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