Several years ago, Minjun, who is single, acquired 1244 stock in Blue Corporation at a cost of $204,800. He sells the Blue stock for $20,480 in the current year. Determine the amount and nature of Minjun's gain or loss recognized this year. Minjun's sale of Blue Corporation stock produces a total loss of $ of which $ is treated as a capital loss.

Exercise 4-25 (Algorithmic) (LO. 6) Several years ago, Minjun, who is single, acquired 1244 stock in Blue Corporation at a cost of $204,800. He sells the Blue stock for $20,480 in the current year. Determine the amount and nature of Minjun's gain or loss recognized this year. Minjun's sale of Blue Corporation stock produces a total loss of $ 50,000 X of which $ is treated as a capital loss. Feedback Check My Work In an exception to the capital treatment that generally results, 1244 permits special loss treatment for losses on the sale or worthlessness of stock of so-called small business corporations. By placing shareholders on a more nearly equal basis with proprietors and partners in terms of the tax treatment of losses, the provision encourages investment of capital in small corporations