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Liz owns Section 1244 stock in X Corporation with a basis of $120,000. She acquired...

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Accounting

Liz owns Section 1244 stock in X Corporation with a basis of $120,000. She acquired the stock three years ago. During the current year she sells the stock for $40,000. Liz is single. As a result of the sale of the stock, how much gain or loss should Liz recognize (before any capital loss limitation)?

a.

$80,000 long-term capital loss

b.

$80,000 ordinary loss

c.

$50,000 long-term capital loss and $30,000 ordinary loss

d.

$50,000 ordinary loss and $30,000 long-term capital loss

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