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When pheasant corporation was formed under § 351, kristen transferred property (basis
When pheasant corporation was formed under § 351, kristen transferred property (basis of $26,000 and fair market value of $22,500) for § 1244 stock. kristen's basis in the pheasant stock is $26,000. three years later, pheasant corporation goes bankrupt and its stock becomes worthless. kristen, who is single, owned the stock as an investment. kristen's loss is: ?
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$22,500 ordinary and $3,500 capital.
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