QUESTION 1 Nancy purchased 200 shares of New Castle common stock directly from the company for $25,000 on 7/12/2019. At the time of the purchase, New Castle had $600,000 of paid -in-capital. On 6/30/2020, she sold all or her New Castle common stock for $17.500. Nancy; a cash basis, calendar year taxpayer; is single. What is the amount and character (if any) of her tax deduction for 2020? O $0; nondeductible O $7,500; ordinary loss $7,500; short-term capital loss $7,500; long-term capital loss QUESTION 2 Brandon bought a $4,000 corporate bond on 12/1/2019. On 6/14/2020, the corporation became insolvent and was dissolved on 7/31/2020. Brandon did not recover any proceeds related to bond. He is a cash basis, calendar year taxpayer. What is the amount and character (if any) of his deduction for 2020? $3,000; short-term capital loss $4,000; short-term capital loss $4,000; long-term capital loss $4,000; ordinary loss