Firm LD, a calendar year taxpayer, owns 20,000 shares of MXP stock with a $160,000 basis. In November, LD's chief financial officer learned that MXP had just declared bankruptcy. The CFO was unable to determine if MXP's board of directors intend to try to save the corporation or dissolve it under state law.
Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.