Which of the following statements best describes the tax benefits that arise from the sale of 1244 stock?

Multiple Choice

1244 allows an individual shareholder to exempt gain from sale of the stock from tax.

1244 allows an individual shareholder to deduct all of the loss from sale of the stock as an ordinary loss in the year of the sale.

1244 allows an individual shareholder to deduct up to $50,000 of the loss from sale of the stock as an ordinary loss in the year of the sale.

1244 allows a corporate shareholder to deduct up to $50,000 of the loss from sale of the stock as an ordinary loss in the year of the sale.