Samuel,a calendar year taxpayer,owns 100 shares of R Corporation common stock which was purchased two years ago for $3,600.Samuel sells all 100 shares on December 27 of the current year for $1,000.On January 4 of the following year,Samuel purchases 40 shares of R Corporation preferred stock.Samuel's recognized loss will be

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Samuel's recognized loss is calculated as the difference between the selling price and the purchase price of the stock. He sold the stock for $1,000 and originally purchased it for $3,600, resulting in a loss of $2,600. The purchase of preferred stock does not affect the recognition of the loss on the common stock.

Samuel,a Calendar Year Taxpayer,owns 100 Shares of R Corporation Common