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:

Research Questions

Specific questions that a study seeks to answer, guiding the direction and focus of the research.

Double-Blind Study

A study design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias in research results.

Experimental Design

A procedure in research for testing hypotheses where one or more variables are manipulated to determine their effect on a dependent variable.

Independent Variable

The variable in an experiment that is manipulated by the researcher to examine its effect on the dependent variable.