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What is the recognized gain or loss and how is it classified?
On August 10, 2003, an investor purchased 1,000 shares of Mauve Corporation for $30,000. On January 2, 2004, the stock became worthless. What is the recognized gain or loss and how is it classified?
a. $3,000 STCL.
b. $30,000 STCL.
c. $3,000 LTCL.
d. $30,000 LTCL.
e. None of the above.
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