TRUE OR FALSE 1 1. The loss on the sale of stock by a trust company is an ordinary loss 2. The capital gain from the sale of domestic bonds and foreign stocks are subject to regular income tax. 3. Capital loss is deductible to the extent of capital gains. 4. The sale of foreclosed land by a bank is subject to regular income tax. 5. Ordinary loss and capital loss are items for deduction from gross income. 6. Tax basis means cost or depreciated cost of the property. 7. The loss on the sale of bonds by banks is an ordinary loss. 8. An ordinary gain is an item of gross income while a net capital gain is an exclusion from gross income. 9. The holding period rule is relevant to individuals and corporate taxpayers. 10. The gain is said to be short-term if the sale of the asset is made in less than one year from its acquisition. 11. 50% of the net capital gain or loss is considered if the asset is held by individuals for one year or more. 12. Ordinary gains or losses are subject to the holding period rule if the taxpayer is an individual tax payer 13. The gain or loss on the sale of any stock us subject to capital gains tax. 14. Ordinary loss is deductible to the extent of ordinary gains. 15. A net ordinary loss is deductible from gross income while a net capital is deductible