Nancy and the Minor Corporation own bonds of the East Corporation. Minor Corporation owns 80% of the stock of East Corporation. East Corporation has declared bankruptcy this year, and bondholders will receive only 26% of the face value of the debt. Explain why the loss is a capital loss for Nancy but an ordinary loss for the Minor Corporation. Nancy held the bonds of the East Corporation as an For Minor Corporation, the Thus, Minor's loss due to the worthless securities of the East Corporation are as an securities is an ordinary loss