Stock in red corporation

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On September 3, 2009, Able purchased S 1244 stock in Red Corporation for $6,000. On December 31, 2009 the stock was worth $8,500. On August 15,2010 Able was notified that the stock was worthless. How should able report this item on his 2009 and 2010 tax returns?

a) 2009-$0; 2010-$6,000 ordinary loss

b) 2009-$0; 2010-$6,000 long term capital loss

c) 2009-$2,500 short-term capital loss; 2010-$8,500 short-term capital loss

d) 2009-$2,500 short-term capital gain; 2010-$3,800 orinary loss

e) none of the above

Reference no: EM13142777

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