On July 20,2015,Matt (Who Files a Joint Return)purchased 3,000 Shares

question 15

Multiple Choice

On July 20,2015,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 10,2015,Matt purchased an additional 1,000 shares of Orange Corporation stock from a friend for $150,000.On September 15,2016,Matt sold the 4,000 shares of stock for $120,000.How should Matt treat the sale of the stock on his 2016 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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