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3241004551 [841]
3 years ago
9

Bruce receives 20 stock rights in a nontaxable distribution. The stock rights have an FMV of $5,000. The common stock with respe

ct 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
Business
1 answer:
svlad2 [7]3 years ago
4 0

Answer:

c. $5,000

Explanation:

Bruce can deduct loss of $5,000

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