Murd Corporation, a domestic corporation, acquired a 90% interest in the Drum Company in 2011 for $30,000. During 2015, the stock of Drum was declared worthless. What type and amount of deduction should Murd take for 2015?
a. Long-term capital loss of $1,000.
b. Long-term capital loss of $15,000
c. Ordinary loss of $30,000
d. Long-term capital loss of $30,000
Answer: C
Tax
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