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Business, 21.05.2020 18:57 benallyadam2067

Justin Justice owns 55% of the outstanding stock of Rego Corporation. During the current year, Rego sold a trailer to Justin for $10,000. The trailer had an adjusted tax basis of $12,000 and had been owned by Rego for 3 years. In its current-year income tax return, what is the allowable loss that Rego can claim on the sale of this trailer?

A. $0.

B. $2,000 ordinary loss.

C. $2,000 Sec. 1231 loss.

D. $2,000 Sec. 1245 loss.

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Justin Justice owns 55% of the outstanding stock of Rego Corporation. During the current year, Rego...
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