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In 2019, Troy purchased ss 1244 stock in his friend Brady's company for $52,000. Troy was an initial shareholder. On December 31, 2019, the stock
In 2019, Troy purchased ss 1244 stock in his friend Brady's company for $52,000. Troy was an initial shareholder. On December 31, 2019, the stock was worth $54,000. On August 15, 2020 Brady's company went bankrupt. Troy should report in his 2020 tax return:
A. $50,000 ordinary loss and $4,000 capital loss
B. $50,000 ordinary loss and $3,000 capital loss
C. $50,000 ordinary loss and $2,000 capital loss
D. $50,000 ordinary loss
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