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.

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Definitions:

Health Care

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Medical Care

Professional health services provided by doctors, nurses, or other healthcare practitioners aimed at diagnosing, treating, and preventing illnesses and injuries.

Severe Symptoms

Intense or extreme signs of illness or disorder that significantly impact an individual's health or functioning.

Stressful Medical Procedure

Any medical or surgical intervention that induces significant stress or anxiety in patients.