On July 20, 2016, Matt (Who Files a Joint Return)

question 78

Multiple Choice

On July 20, 2016, 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, 2016, Matt purchased an additional 1,000 shares of Orange Corporation stock from a friend for $150,000. On September 15, 2017, Matt sold the 4,000 shares of stock for $120,000. How should Matt treat the sale of the stock on his 2017 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.

---

Definitions:

Nonprofit Organizations

Institutions that operate for purposes other than making a profit, often focusing on social, educational, or charitable activities.

Quality Inspection

The process of examining goods or services to ensure they meet specified quality criteria or standards.

Contractual Vertical Marketing Systems

Collaborative arrangements among channel members at different levels of the distribution process, coordinated through contracts to achieve greater efficiency.

Types

Categories or classifications that differentiate items, concepts, or entities based on shared characteristics or qualities.