Q, Who Is Single, Acquired § 1244 Stock of XYZ

question 35

Multiple Choice

Q, who is single, acquired § 1244 stock of XYZ Corporation several years ago for $150,000.During the current year, Q sold the XYZ stock for $20,000.Q also realized a $10,000 long-term capital gain during the year from a separate transaction.Q's taxable income, excluding both of these transactions, is $70,000 (after personal and dependency exemptions) .Q's taxable income including these transactions is how much?

• A)$0
• B)$17,000
• C)$20,000
• D)$67,000
• E)None of the above

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Definitions:

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