Loss due to bad debts
Loss of stock due to fire
Loss on shares held as stock in trade
Loss of a machine due to theft
Answer is Right!
Answer is Wrong!
The correct answer is: C. Loss on shares held as stock in trade
A capital loss is a loss on the sale or exchange of a capital asset. A capital asset is an asset that is not held for sale in the ordinary course of business. Shares held as stock in trade are considered capital assets.
A loss due to bad debts is a business expense. A loss of stock due to fire is a casualty loss. A loss of a machine due to theft
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