Mason is single and the original shareholder of 1,000 shares of Section 1244 stock in Miles Corporation acquired four years ago. He has a basis of $65,000 in the stock. The stock has significantly declined in value so he sells it in the current year for $5,000. Identify the amount and type of gain or loss that Mason has on this sale.
a. $50,000 ordinary loss and a $10,000 capital loss
b. $60,000 capital loss
c. $53,000 ordinary loss and a $12,000 capital loss
d. $60,000 ordinary loss