The Governor, a calendar year taxpayer, owned stock in Woodbury Corporation (a publicly held company). He acquired the stock on December 21, 2014, at a cost of $500,000. On June 30, 2015, the stock became worthless as the company declared bankruptcy after its employees walked-off the job. What is the character of the Governor's loss?a) Long-term capital loss b) Ordinary loss c) Short-term capital loss d) Ordinary gain e) No loss at all as the Governor was not a nice man

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor. required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)