Melinda and Riley Are Married Taxpayers

Multiple Choice

Melinda and Riley are married taxpayers. During the year, they completed a single capital asset sale in which a loss of $120,000 is realized on the sale ($15,000 amount realized, less $135,000 adjusted basis) of qualified small business stock. How much of the loss can the taxpayers deduct?

A) $3,000
B) $53,000
C) $100,000
D) $103,000
E) $120,000