Sally purchased 500 shares of qualified small business stock for $100,000 when it was originally issued on October 13, 2006. If Sally sold the shares for $150,000 on September 11, 2019, how much gain must she recognize?

• A.$25,000
• B.$40,000
• C.$50,000
• D.$0

Sams building that was used for business was partially destroyed by a hurricane. There was no insurance for hurricane damage. The building had an adjusted basis of $46,000. The FMV was $90,000 just before the hurricane and $65,000 just after the hurricane. What is the deductible casualty loss?

• A.$25,000
• B.$44,000
• C.$46,000
• D.$19,000