Loss to be reported on the joint return


During 2010, Vera Venture sold her interests in two small business corporations. Her loss on Ballpoint Pen Corporation stock was $120,000 and her loss on Pencils Corporation stock was $20,000. Both losses qualify under Code Sec. 1244. Vera files jointly with her husband. What is the amount and character of Vera's loss to be reported on their joint return for 2010?

a. $140,000 ordinary; $0 capital

b. $100,000 ordinary; $40,000 capital

c. $40,000 ordinary; $100,000 capital

d. $0 ordinary; $140,000 capital

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Accounting Basics: Loss to be reported on the joint return
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