On July 20,2014,Matt (Who Files a Joint Return) Purchased 3,000

question 17

Multiple Choice

On July 20,2014,Matt (who files a joint return) purchased 3,000 shares of Orange Corporation stock (the stock is § 1244 small business stock) for $24,000.On November 10,2014,Matt purchased an additional 1,000 shares of Orange Corporation stock from a friend for $150,000.On September 15,2015,Matt sold the 4,000 shares of stock for $120,000.How should Matt treat the sale of the stock on his 2015 return?

• A)$54,000 ordinary loss.
• B)$100,000 ordinary loss;$46,000 net capital gain.
• C)$100,000 ordinary loss;$20,000 STCL.
• D)$130,000 ordinary loss;$66,000 LTCG.
• E)None of the above.

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Definitions:

Mechanical Energy

The sum of kinetic and potential energy in physical systems, describing the ability to do work based on movement and position.

Touch Discrimination

The ability to recognize and differentiate between various types of touch stimuli, such as textures or pressure.

Thermoreceptors

Sensory nerve endings under the skin that respond to changes in temperature at or near the skin and provide input to keep the body’s temperature at 98.6 degrees Fahrenheit.

Endorphins

Natural pain-relieving peptides produced by the body during exercise, excitement, pain, and sexual activity, known to induce feelings of pleasure or euphoria.