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:

Technical Hypothesis

An alternative expression for hypothesis, focusing on a detailed, often scientific prediction or explanation that requires testing and validation through experiments or observation.

FOXP2 Gene

A gene associated with language and speech development in humans, mutations in which can lead to speech and language disorders.

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The movement of blood through the network of blood vessels in the brain, critical for delivering nutrients and oxygen while removing wastes.

Natural Selection

The process by which heritable traits that confer a survival or reproductive advantage become more common in a population over generations.