On September 3, 2016, Able, a Single Individual, Purchased §

question 69

Multiple Choice

On September 3, 2016, Able, a single individual, purchased § 1244 stock in Red Corporation from his friend Al for $60,000. On December 31, 2016, the stock was worth $85,000. On August 15, 2017, Able was notified that the stock was worthless. How should Able report this item on his 2017 tax return?

• A)$85,000 capital loss.
• B)$85,000 ordinary loss.
• C)$50,000 ordinary loss and $35,000 capital loss.
• D)$60,000 ordinary loss.
• E)None of the above.

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Definitions:

Technical Specifications

Detailed information and criteria about the technical aspects of a product, explaining its design, features, and performance.

Ethical Standpoint

A perspective or position from which moral decisions are made, often based on a set of moral principles or values.

Vocational Technology

Educational training programs that focus on the skills required for specific trades or careers.

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A situation, conduct, or event that provides sufficient grounds for a lawsuit.