Claude Bergeron Sold 1,000 Shares of Ditta, Inc

question 65

Multiple Choice

Claude Bergeron sold 1,000 shares of Ditta, Inc., an S corporation, for $12,000. He had owned the stock for three years and had a stock basis of $111,000 in the shares. Claude is single, and he is the original owner of the § 1244 stock shares. Calculate the appropriate tax treatment.

• A) No gain or loss.
• B) $50,000 LTCL? $49,000 ordinary deduction.
• C) $50,000 ordinary deduction? $49,000 LTCL.
• D) $99,000 long-term capital loss.

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Definitions:

Equilibrium

A condition where the supply and demand in the market are equal, leading to steady prices.

Advanced Analysis

Advanced analysis refers to complex techniques and methods used to examine data, processes, or systems in depth, often to make predictions or informed decisions.

Equilibrium Level

When market demand matches supply, it results in stable pricing, indicating a state of balance.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where each has a negligible impact on the market price.