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In: AccountingCassius Clay operates a bituminous coal home heating anddelivery service in Dauphin and Center counties....Cassius Clay operates a bituminous coal home heating anddelivery service in Dauphin and Center counties. He must have asupply of bituminous coal on hand so customers may get the coalthey need to heat their homes. As a convenience to his customers,and to prevent high bills over the winter and low bills in thesummer, he allows them to buy coal in advance at set prices and topay for the coal ratably over a calendar year. To ensure himself asteady, reliable, and affordable supply of coal and to protectagainst price fluctuations, Cassius Clay enters into certainfutures contracts to buy coal at a future date and at a set price.Clay clearly indicates beforehand that the futures contract inwhich he enters to buy coal is simply to secure a supply of coaland to protect him from losses on the futures contracts with hiscustomers to sell coal, and that he does not intend to profit fromthe contract itself. Assume that Cassius Clay realizes a loss onthe futures contract in which he entered to buy coal. That is, theprice per his contract to buy coal is higher than the actual spotmarket price of coal the day he acquires a new supply of coal. Howshould Cassius Clay classify the loss—as ordinary or as capital? Besure to demonstrate your research skills in writing a memo to thefile. You must cite the relevant code section(s) (including section1221) and at least two (2) Supreme Court cases (hint: the two keycases are dated 1955 and 1988). You must also address the generalprinciple of classifying assets—as capital or as operating—and theexceptions thereto.