Manha has $40,000 AG! without considering the following
information. During the year, she incurs an LTCL of $10,000 and has a gain of $1 4,000
due to the sale of a capital asset held for more than a year.
a. If the $14,000 gain is nor properly classified as an LTCG (i.e., is improperly trea ted as
an ordinary gain}, determine Martha's AGL
b. If the $1 4,000 g3in is properly classified as :m LTCG, determine her AGL
c. If Martha has a $2,500 STCL carryover from earlier years, how would the answers to
Pares a and b be affected?