Mr Forest, a Single Taxpayer, Recognized a $252,000 Loss on the Sale

question 103

Multiple Choice

Mr. Forest, a single taxpayer, recognized a $252,000 loss on the sale of Section 1244 stock. What is the character of this loss?

• A) $50,000 ordinary and $202,000 capital
• B) $100,000 ordinary and $152,000 capital
• C) $252,000 capital
• D) $252,000 ordinary

---

Definitions:

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single economic entity.

Voting Shares

Shares of a corporation's stock that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, and cash flows of a parent company and its subsidiaries as one single entity.

Voting Stock

Shares that give the holder the right to vote on company matters, such as electing the board of directors.