On February 20, 2018, Bill purchased stock in Pink Corporation (the stock is not small business stock) for $1,000. On May 1, 2019, the stock became worthless. During 2019, Bill also had an $8,000 loss on § 1244 small business stock purchased two years ago, a $9,000 loss on a nonbusiness bad debt, and a $5,000 long-term capital gain. How should Bill treat these items on his 2019 tax return?
A. $4,000 long-term capital loss and $9,000 short-term capital loss.
B. $4,000 long-term capital loss and $3,000 short-term capital loss.
C. $8,000 ordinary loss and $3,000 short-term capital loss.
D. $8,000 ordinary loss and $5,000 short-term capital loss.
E. $8,000 long-term capital loss and $6,000 short-term capital loss.
Answer: C
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