Sophia, a Single Taxpayer, Is One of the Founding Shareholders

Multiple Choice

Sophia, a single taxpayer, is one of the founding shareholders of Davis Corporation.She acquired her Davis Corporation Section 1244 stock four years ago for $163,000.During the current year, Sophia sold all of her Davis stock to an unrelated party for $40,000.There were no other capital gains or losses reported on her tax return for the year.What is the maximum amount of loss that can be deducted on Sophia's current year tax return for the Davis stock?

A) $3,000
B) $50,000
C) $53,000
D) $123,000