Lucia Owns 100 Shares of Cronco Inc

question 107

Multiple Choice

Lucia owns 100 shares of Cronco Inc.which she purchased on December 1 of last year for $10,000.The stock is not Sec.1244 stock.On July 1 of the current year,Lucia receives notice from the bankruptcy court that Cronco Inc.has been liquidated,and there are no assets remaining for shareholders.As a result,Lucia will have

• A)a short-term capital loss of $10,000.
• B)a long-term capital loss of $10,000.
• C)an ordinary loss of $10,000.
• D)no loss allowed.

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Definitions:

Helium (He)

A colorless, odorless, tasteless, non-toxic, inert monatomic gas with the atomic number 2, making it the second lightest and second most abundant element in the observable universe.

Lewis Dot Structure

A representation of the valence electrons around atoms, indicating bonds and lone pairs in molecules.

Calcium (Ca)

A soft gray alkaline earth metal, represented by the symbol Ca, essential for living organisms, particularly in cell physiology and bone formation.

Lewis Dot Structure

A diagram that shows the bonding between atoms of a molecule and the lone pairs of electrons that may exist.