On July 20, 2010, Matt (Who Files a Joint Return)

question 6

Multiple Choice

On July 20, 2010, 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, 2011, Matt purchased an additional 1,000 shares of Orange Corporation stock from a friend for $150,000. On September 15, 2012, Matt sold the 4,000 shares of stock for $120,000. How should Matt treat the sale of the stock on his 2012 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:

Progressive Era

A period of widespread social activism and political reform in the United States from the 1890s to the 1920s, aimed at addressing issues stemming from industrialization, urbanization, and corruption.

Dilemma Of Federalism

The conflict or challenge of balancing power between national and state governments within a federal system.

Elite Democrats

Refers to members of the Democratic Party who hold significant power, influence, or status within the party's structure or in government.