Whale Corporation is owned equally by Brayden, Natalie, and Turner Corporation. Brayden

and Natalie are single. Eight years ago, Brayden, Myron, and Turner, the original investors in

Whale, each paid $$25,000$ for their Whale stock. Natalie purchased her stock from Myron five

years ago for $$25,000.$ No adjustments to basis occur after the stock acquisition date. Whale

encounters financial difficulties as a result of a lawsuit brought by a customer who suffered

personal injuries from using a defective product. Whale files for bankruptcy, and uses all its

assets to pay its creditors in the current year.

Requirement

What are the amount and character of each shareholder's loss?

Character of the loss

Total loss Ordinary loss

Capital loss

Brayden