In 1996, Mr

question 71

Multiple Choice

In 1996, Mr. Exton, a single taxpayer, contributed $30,000 in exchange for 100 shares of Morton stock. In 2005, he paid $43,000 to another shareholder to purchase 100 more shares of Morton stock. Morton stock qualified as Section 1244 stock when it was issued. This year, Mr. Exton sold his 200 Morton shares for $250 per share. What is the amount and character of Mr. Exton's recognized loss?

• A) $23,000 ordinary loss
• B) $23,000 long-term capital loss
• C) $3,000 long-term capital gain and $30,000 ordinary loss
• D) $5,000 ordinary loss and $18,000 long-term capital loss.

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Definitions:

Asexual

An orientation describing individuals who do not experience sexual attraction towards others, regardless of gender.

Masturbation

The act of sexually stimulating oneself typically leading to orgasm.

Sexual Self-Stimulation

The act of stimulating one's own genitals or erogenous zones for sexual pleasure, often referred to as masturbation.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or dependence.