Respuesta :
If Minjun acquired § 1244 stock in Blue Corporation at a cost of $60,000 and sells the Blue stock for $5,000 so the ordinary loss of $50,000. In the other side, the capital loss of $5,000.
Stocks are one of the most popular forms of money market instruments today. Shares which are also called securities or stock become securities that state proof of ownership of a company or business entity. Shares can also be interpreted as a sign of capital participation of a person or business entity as a certain party in a company or limited liability company. By including capital, the party has a claim on the company's income, assets, and is entitled to attend the general meeting of shareholders.
Another definition of stock is something of value from a company in the form of a Limited Liability Company or an Issuer that is used to transport shareholders. So, someone who invests by buying shares of a company then he is instinctive to become the owner or officer of the company's shares.
The calculation:
Total loss on the sale = $60,000 - $5,000
Total loss on the sale = $55,000
So, the first $50,000 receives ordinary loss treatment and excess $5,000 is capital loss.
Several years ago, Minjun, who is single, acquired § 1244 stock in Blue Corporation at a cost of $60,000. He sells the Blue stock for $5,000 in the current year. Determine the amount and nature of Minjun's gain or loss recognized this year.
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