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Henry had no trades this year but Downoutsco, Inc. of which Henry owned 200 shares (total cost: $4,000) declared bankruptcy in January of 2017. The...

Henry had no trades this year but Downoutsco, Inc. of which Henry owned 200 shares (total cost: $4,000) declared bankruptcy in January of 2017.



The loss on the stock: (a) gives a $4,000 deduction for the year, (b) gives a $3,000 deduction for the year, (c) is treated as bad debt

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(a) gives a $4,000... View the full answer

1 comment
  • Isn't it the $3,000 because you can only offset gains by 3k a year??
    • nuqul.c
    • May 07, 2018 at 10:46am

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