1. Which of the following statements concerning the taxation of assets is CORRECT?

a) Ordinary income may qualify for a special 0% rate.

b) Capital gains are always taxed at the taxpayer's marginal tax rate.

c) Gains on Section 1231 assets are taxed at ordinary rates, and losses are taxed at capital rates.

d) Gains on Section 1231 assets are taxed at long-term capital gains tax rates, and losses are taxed at ordinary income tax rates.

2) On November 20, 2018, Dylan purchased stock in Tech, Inc. for $10,000. On October 31, 2019, the stock became worthless. How should Dylan treat the loss in 2019 (i.e. long-term or short-term, capital gain or loss)?