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1.1.Question :
(TCO 2) On September 3, 20X1, Able purchased stock in Red Corporation (the stock is not small business stock) for $6,000. On December 31, 20X1, the stock was worth $8,500. On August 15, 20X2, Able was notified that the stock was worthless. How should Able report this item on his 20X1 and 20X2 tax returns?
20X1: $0; 20X2: $6,000 short-term capital loss
20X1: $0; 20X2: $6,000 long-term capital loss
20X1: $2,500 short-term capital loss; 20X2: $8,500 short-term capital loss
20X1: $2,500 short-term capital gain; 20X2: $3,800 long-term capital loss
None of the above