Ralph and Yolanda Purchased 20% of the Initial Offering of Major

question 99

Multiple Choice

Ralph and Yolanda purchased 20% of the initial offering of Major Corporation common stock for $150,000. Major Corporation is a qualifying small business corporation and the stock qualifies as Sec. 1244 stock. Ten months later, Major Corporation files for bankruptcy and the shareholders are notified that the stock is worthless. Ralph and Yolanda, who are married and file a joint return, have a

• A)$150,000 ordinary loss.
• B)$150,000 capital loss.
• C)$100,000 ordinary loss; $50,000 capital loss.
• D)$100,000 ordinary loss; $50,000 ordinary loss carryforward.

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Definitions:

Oversleeping

Sleeping for a duration longer than what is considered the norm or necessary, potentially causing various health issues.

Depression

A syndrome identified by steady depressive emotions or lack of motivation in previously enjoyed activities, significantly impairing routine life operations.

Sleep Deprivation

Refers to the condition of not having enough sleep, which can lead to a variety of physical and mental health issues.

Concentration

The action or power of focusing one's attention or mental effort on a specific object, task, or activity without getting distracted.