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09-12-2022
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A worthless security had a holding period of six months when it became worthless on December 10, 2020. The investor who had owned the security had a basis of $20,000 for it. Which of the following statements is correct?
a. The investor has a long-term capital loss of $20,000.
b. The investor has a short-term capital gain of $20,000.
c. The investor has a short-term capital loss of $20,000.
d. The investor has a nondeductible loss of $20,000.
c. The investor has a short-term capital loss of $20,000.

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