Preston purchases 1,000 shs of BIG Corp on April 1, 20x1 for $2,500 She sells short...

 

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Preston purchases 1,000 shs of BIG Corp on April 1, 20x1 for $2,500 She sells short 1,000 shs of BIG Corp on December 1, 20x1, for $3,750 She closes the short sale on January 15, 20x2, by purchasing & delivering 1,000 shs of BIG Corp for $3,250. She sells the original position on December 15, 20x2 for $3,000. What is the amount and character of taxable income that Preston must recognize in 20x1? $750 long-term capital loss a. Ob. $0 O $1,250 short-term capital loss C. $250 short-term capital loss d. Preston purchases 1,000 shs of BIG Corp on April 1, 20x1 for $2,500 She sells short 1,000 shs of BIG Corp on December 1, 20x1, for $3,750 She closes the short sale on January 15, 20x2, by purchasing & delivering 1,000 shs of BIG Corp for $3,250. She sells the original position on December 15, 20x2 for $3,000. What is the amount and character of taxable income that Preston must recognize in 20x1? $750 long-term capital loss a. Ob. $0 O $1,250 short-term capital loss C. $250 short-term capital loss d.