On July 20, 2018, Matt (Who Files a Joint Return)

question 29

Multiple Choice

On July 20, 2018, 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, 2018, Matt purchased an additional 1,000 shares of Orange Corporation stock from a friend for $150,000.On September 15, 2019, Matt sold the 4,000 shares of stock for $120,000.How should Matt treat the sale of the stock on his 2019 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 these.

---

Definitions:

Advertising Costs

The expenses associated with promoting products, services, or brands through various media channels.

Copyright Information

Legal details that specify the rights the author or owner holds over the material, including how it can be used by others.

Main Point

The most important or central idea in a discussion, presentation, or piece of writing.

Visual's Message

The idea or information that a visual element is intended to convey to its viewer.