Sam, a single taxpayer, acquired stock in a corporation that qualified as a small business corporation under 1244, at a cost of $100,000, three years ago. He sells the stock for $10,000 in the current tax year.

Sam would have a capital loss of $_____ and an ordinary of loss of $___ for tax purposes.

b. Assume instead that Sam sold the stock to his sister, Kara, a few months after it was acquired for $100,000 (its fair market value).

If Kara sells the stock for $60,000 in the current year, she should treat the loss as a capital loss of $__________ for tax purposes.