Amy, a Single Individual and Sole Shareholder of Brown Corporation

question 1959

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

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Definitions:

Fugue State

A rare psychological state involving loss of personal identity and memory, often accompanied by unexpected travel or wandering.

Psychogenic Amnesia

A memory disorder characterized by sudden retrograde episodic memory loss, said to occur for a period of time proceeding a traumatic event, though not due to direct physical damage.

Catatonic Schizophrenia

A type of schizophrenia characterized by abnormal movement patterns, including stupor, rigidity, or excessive, purposeless movements.

Fugue Disorder

A rare psychological disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality, often involving unplanned travel or wandering.