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29 . When Pheasant Corporation was formed under 351, Kristen transferred property (basis of $26,000 and fair market value of $22,500) for 1244 stock. Kristen's
29. When Pheasant Corporation was formed under 351, Kristen transferred property (basis of $26,000 and fair market value of $22,500) for 1244 stock. Kristen's basis in the Pheasant stock is $26,000. Three years later, Pheasant Corporation goes bankrupt and its stock becomes worthless. Kristen, who is single, owned the stock as an investment. Kristen's loss is:
a.
$26,000 capital.
b.
$22,500 ordinary and $3,500 capital.
c.
$3,500 ordinary and $22,500 capital.
d.
$26,000 ordinary.
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