Liz owns Section 1244 stock in X Corporation with a basis of $120,000. She acquired...
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Accounting
Liz owns Section 1244 stock in X Corporation with a basis of $120,000. She acquired the stock three years ago. During the current year she sells the stock for $40,000. Liz is single. As a result of the sale of the stock, how much gain or loss should Liz recognize (before any capital loss limitation)?
a.
$80,000 long-term capital loss
b.
$80,000 ordinary loss
c.
$50,000 long-term capital loss and $30,000 ordinary loss
d.
$50,000 ordinary loss and $30,000 long-term capital loss
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