Stacy, Who Is Married and Sole Shareholder of ABC Corporation

question 474

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

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Definitions:

Water Pressure

The force exerted by water on the surrounding environment, which increases with depth and is a critical factor in aquatic ecosystems and engineering.

Radial Symmetry

A form of symmetry in which body parts are arranged around a central axis, seen in organisms like jellyfish and sea urchins.

Sponges

Simple aquatic animals of the phylum Porifera, characterized by a porous body and a rudimentary structure, feeding by filtering water through their bodies.

General Characteristics

The basic, defining traits or features shared by members of a group, species, or category, providing a broad overview.