Compute the following regarding business and nonbusiness bad debts. on may 9, 2014, calvin acquired 250 shares of stock in aero corporation, a new startup company, for $68,750. calvin acquired the stock directly from aero, and it is classified as § 1244 stock (at the time calvin acquired his stock, the corporation had $900,000 of paid-in capital). on january 15, 2016, calvin sold all of his aero stock for $7,000. assume that calvin is single. if an amount is zero, enter "0". as a result of the sale, calvin has:

ordinary loss: $

short-term capital loss: $

long-term capital loss: $

Ordinary loss is $50,000

and

Long term capital loss =  $11,750

and

Short term capital loss =  $ 0

Explanation:

given data

purchased = $68,750

Sale = $7,000

classified = § 1244 stock

solution

we know here that loss will be

loss = $68,750 -$7,000

loss=  $61,750

classified = § 1244 stock so here loss to be treated as ordinary losses instead of capital losses from share and deducted

individual tax returns = maximum of $50,000

and for joint return = $100,000

so

balance loss = $61,750-$50,000 = $11,750

so it is s deducted as Long-term capital loss

and it is no Short term capital loss

hence Ordinary loss is $50,000

and

Long term capital loss =  $11,750

and

Short term capital loss =  $ 0

answer; a set of mutual funds with similar risk characteristics to your mutual fund;