3. Al, who is single, has a gain of $40,000 on the sale of $ 1244 stock (small business stock) and a loss of $80,000 on the sale of $ 1244 stock. a. What is his ordinary loss? b. What is his capital gain or loss? 4. In order to protect against rent increases on the building in which she operates a dance studio, Mella signs an 18 month lease for $36,000 ($2,000 per month). The lease commences on March 1, 2019. Under the 12 month rule, how much of the $36,000 payment can she deduct in 2019 if Mella is a cash basis taxpayer? 5. In order to protect against rent increases on the building in which she operates a dance studio, Mella signs an 18 month lease for $36,000 ($2,000 per month). The lease commences on November 1, 2019. Under the 12 month rule, how much of the $36,000 payment can she deduct in 2019 if Mella is a cash basis taxpayer