Betty Sue was recently reviewing her investment portfolio and noticed that a stock she had purchased on March 1, 2021 for 5 shares and at a purchase price of $10 a share, had risen to $35 a share on June 1, 2021. Sadly, after that run up, in a surprising move the company declared bankruptcy on October 1, 2021 and announced that stockholders like Betty Sue should not expect to receive anything on the liquidation of the corporation. Betty Sue was wondering what type of loss, if any, she would have in 2021?

 Short-term capital loss of $50

Long-term ordinary loss of $175

Long-term capital loss of $140

Answer rating: 100% (QA)

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