On July 20, 2016, Matt (Who Files a Joint Return)

question 78

Multiple Choice

On July 20, 2016, 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, 2016, Matt purchased an additional 1,000 shares of Orange Corporation stock from a friend for $150,000. On September 15, 2017, Matt sold the 4,000 shares of stock for $120,000. How should Matt treat the sale of the stock on his 2017 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:

Postmodern World

An era characterized by skepticism towards grand narratives and ideologies, focusing on diversity and plurality.

Disorienting Efforts

Actions or strategies aimed at creating confusion or uncertainty, often used in political, social, or artistic contexts to challenge established norms and perceptions.

Critique

A detailed analysis and assessment of something, especially a literary, philosophical, or political theory.

Postmodernism

An intellectual stance or mode of discourse defined by an attitude of skepticism toward what it describes as the grand narratives and ideologies of modernism, emphasizing plurality, ambiguity, and diversity.