Victor bought 100 shares of stock of Wabash Manufacturing Corporation from an unrelated individual paying $1 per share on December 20, 2017. On April 17, 2018, the corporation is declared bankrupt and the shares are deemed worthless. What is the amount and character of Victor's recognized loss as a result of the bankruptcy?

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Victor's loss is considered a long-term capital loss because the stock was held for more than one year (from December 20, 2017, to April 17, 2018) before it was deemed worthless due to the bankruptcy of Wabash Manufacturing Corporation. The amount of the loss is $100, which is the cost basis of the stock ($1 per share for 100 shares).

Victor Bought 100 Shares of Stock of Wabash Manufacturing Corporation