Art,an Unmarried Individual,transfers Property (Basis of $130,000 and Fair Market

question 67

Multiple Choice

Art,an unmarried individual,transfers property (basis of $130,000 and fair market value of $120,000) to Condor Corporation in exchange for § 1244 stock.The transfer qualifies as a nontaxable exchange under § 351.Five years later,Art sells the Condor stock for $50,000.With respect to the sale,Art has:

• A)An ordinary loss of $80,000.
• B)An ordinary loss of $70,000 and a capital loss of $10,000.
• C)A capital loss of $80,000.
• D)A capital loss of $30,000 and an ordinary loss of $50,000.
• E)None of the above.

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Definitions:

Restrictive Items

Objects or substances limited or forbidden due to regulations, typically for safety or security reasons.

Apical Pulse

The pulse rate measured at the apex of the heart, fundamental for assessing cardiac function.

Stethoscope

A medical instrument used to listen to sounds within the body, such as the heart and lungs.

Patient's Sternum

The flat bone located at the center of the chest, important in the protection of heart and lungs and often involved in surgical procedures.