- Karl, A single individual tax payer purchase stock in Rudy Corporation for 55,000 in 2010. In 2020, the stock in Rudi Corporation became worthless. The stock in Rudi Corporation qualifies for section 1244 stock. The "Total deduction that Karl may deduct for the year of 2020 is: A) $ 55,000 B) $ 53,000 C) $ 50,000 D) $3,000 Margarita had a basis of 45,000 in the stock in Andrea Corporation which she sold to Tony on July 31, 2020 for $85,000. Andrea Corporation had accumulated earnings and profits (E & P) of $40,000 on January 1, 2020 and current earnings and profits (E&P) for 2020 of $60,000. During the tax year of 2020, Andrea Corporation made the following distributions: $80,000 cash to margarita on July 1, 2020 and $80,000 Cash to Tony on December 30, 2020. Taxable Dividend Income to Tony for the tax year of 2020 is: A) $ 35,000 B) $ 70,000 C) $ 30,000 D)$ 50,000