Complete the following statements regarding business and nonbusiness bad debts. Lulu is a calendar year taxpayer. She owned stock in Kasper Corporation (a publicly held company). Lulu acquired the stock as an investment on November 1, 2018, at a cost of $23,000. On June 30, 2029, the stock became worthless when the company declared bankruptcy.

Because the stock is deemed to have become worthless as of June 30, 2020 Lulu has a long-term capital loss.