Ralph and Yolanda Purchased 20% of the Initial Offering of Major

question 99

Multiple Choice

Ralph and Yolanda purchased 20% of the initial offering of Major Corporation common stock for $150,000. Major Corporation is a qualifying small business corporation and the stock qualifies as Sec. 1244 stock. Ten months later, Major Corporation files for bankruptcy and the shareholders are notified that the stock is worthless. Ralph and Yolanda, who are married and file a joint return, have a

• A)$150,000 ordinary loss.
• B)$150,000 capital loss.
• C)$100,000 ordinary loss; $50,000 capital loss.
• D)$100,000 ordinary loss; $50,000 ordinary loss carryforward.

---

Definitions:

Chronic High Blood Pressure

A condition characterized by consistently elevated arterial blood pressure over an extended period, potentially leading to health issues.

Pancreas

A glandular organ located in the abdomen that plays a crucial role in digestion and regulation of blood sugar by releasing insulin and digestive enzymes.

Insufficient Insulin Production

A condition where the pancreas produces inadequate amounts of insulin, affecting blood sugar regulation.

Glucose

A basic form of sugar that serves as a crucial energy source for living beings and is found in numerous carbohydrate compositions.