Question: During the current year, Dinah sold Sec. 1244 small business corporation stock that she owned for a loss of $125,000. Assuming Dinah is married and

During the current year, Dinah sold Sec. 1244 small business corporation stock that she owned for a loss of $125,000. Assuming Dinah is married and files a joint income tax return for 2010, what is the character of Dinah’s recognized loss from the sale of the stock?

a. $125,000 capital loss.

b. $25,000 capital loss; $100,000 ordinary loss.

c. $75,000 capital loss; $50,000 ordinary loss.

d. $0 capital loss; $125,000 ordinary loss.

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