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:

Period of Time

A specific duration or span of time during which events occur or conditions are planned to take place.

Revoke Offer

The withdrawal of a proposal by the offeror before it has been accepted by the offeree, rendering the offer void.

Formal Contract

An agreement under seal.

Signed and Sealed

A phrase indicating that a document has been formally executed with the signature of the parties involved and sometimes a physical seal.