On July 20,2011,Matt (Who Files a Joint Return)purchased 3,000 Shares

question 107

Multiple Choice

On July 20,2011,Matt (who files a joint return) purchased 3,000 shares of Orange Corporation stock (the stock is § 1244 small business stock) for $24,000.On November 10,2012,Matt purchased an additional 1,000 shares of Orange Corporation stock from a friend for $150,000.On September 15,2013,Matt sold the 4,000 shares of stock for $120,000.How should Matt treat the sale of the stock on his 2013 return?

• A)$54,000 ordinary loss.
• B)$100,000 ordinary loss; $46,000 net capital gain.
• C)$100,000 ordinary loss; $20,000 STCL.
• D)$130,000 ordinary loss; $66,000 LTCG.
• E)None of the above.

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Definitions:

Stereotypes

Oversimplified, generalized images or ideas about a group of people, ignoring individual differences.

Social Schema

A cognitive framework that helps individuals organize and interpret information about the social world.

Stereotypes

Stereotypes are oversimplified and widely held beliefs or ideas about the characteristics, behaviors, and roles of certain groups or types of people, often based on minimal or no evidence.

Social Schemas

Cognitive frameworks that help in organizing social information based on past experiences and social norms.