Business

Parker Chapman

28 July, 22:26

Bruce receives 20 stock rights in a nontaxable distribution. The stock rights have an FMV of $5,000. The common stock with respect to which the rights are issued has a basis of $4,000 and an FMV of $120,000. Bruce allows the stock rights to lapse.

He can deduct a loss of:

A) $0.

B) $1,000.

C) $5,000.

D) none of the above

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