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On January 10, 2011, Sparrow Corporation purchased stock in Macaw Corporation (The stock is 1244 small business stock.) for $275,000. On October 15, 2012, Sparrow
On January 10, 2011, Sparrow Corporation purchased stock in Macaw Corporation (The stock is 1244 small business stock.) for $275,000. On October 15, 2012, Sparrow sold the stock for $150,000. How should Sparrow treat the loss on the sale of the stock?
$125,000 ordinary loss
$125,000 short-term capital loss
$125,000 long-term capital loss
$50,000 ordinary loss and $75,000 long-term capital loss
None of the above
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