Charlie, a single taxpayer, had the following items for the current year:
Salary of $90,000.
Gain of $30,000 on the sale of a § 1244 stock acquired two years earlier.
Loss of $75,000 on the sale of a § 1244 stock acquired three years earlier.
Worthless stock of $7,000. The stock was acquired back on February 1 of the prior year and became worthless on January 15 of the current year.
Determine Charlie’s Adjusted Gross Income for the current year.
a. $37,000.
b. $38,000.
c. $42,000.
d. $47,000.