In 2021, Jenny, who is married and the sole shareholder of Yellow Corporation, sold all of her stock in the corporation for $100,000. Jenny had organized the corporation in 2015 by contributing $250,000 and receiving all of the capital stock of the corporation. Yellow Corporation is a domestic corporation engaged in the manufacturing of motor scooters. The stock in Yellow Corporation qualified as Sec. 1244 stock. The sale results in a(n)

A) ordinary loss of $150,000.

B) long-term capital loss of $150,000.

C) ordinary loss of $100,000 and long-term capital loss of $50,000.

D) long-term capital loss of $100,000 and ordinary loss of $50,000.

Question

In 2021, Jenny, who is married and the sole shareholder of Yellow Corporation, sold all of her stock in the corporation for $100,000. Jenny had organized the corporation in 2015 by contributing $250,000 and receiving all of the capital stock of the corporation. Yellow Corporation is a domestic corporation engaged in the manufacturing of motor scooters. The stock in Yellow Corporation qualified as Sec. 1244 stock. The sale results in a(n)

A) ordinary loss of $150,000.

B) long-term capital loss of $150,000.

C) ordinary loss of $100,000 and long-term capital loss of $50,000.

D) long-term capital loss of $100,000 and ordinary loss of $50,000.

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Question

In 2021, Jenny, who is married and the sole shareholder of Yellow Corporation, sold all of her stock in the corporation for $100,000. Jenny had

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