The following facts apply to Eliot, an individual, in the current year: April 2: Sold shares of

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The following facts apply to Eliot, an individual, in the current year:

April 2: Sold shares of stock, purchased on April 1 of the previous year, for a $2,000 gain

May 15: Sold equipment used in Eliot’s business, which had been purchased in July of the previous year, for a $2,000 gain

July 12: Sold shares of stock, purchased in February of the previous year, for a $7,000 gain

November 3: Sold equipment used in Eliot’s business, which had been purchased in January of the current year, for a $1,000 loss

December 9: Sold shares of stock, purchased on February 22 of the current year, for a $3,000 loss

Considering only the above facts, what is Eliot’s net capital gain for the current year?

a. $7,000 long-term capital gain

b. $9,000 long-term capital gain

c. $5,000 long-term capital gain

d. $6,000 long-term capital gain

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South Western Federal Taxation Individual Income Taxes 2017

ISBN: 9781305873988

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen

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