During the year, Hannah sold shares of stock. Information about her cost basis and other details about the transaction were reported to her and to the IRS on a Form 1099-B, and no correction or adjustment is needed. How is this transaction reported on her tax return?

a) The amount of her capital gain or deductible loss is reported directly on page 1 of her Form 1040.

b) The amount of her capital gain or deductible loss is reported on Schedule 1, Additional Income and Adjustments to Income, then combined with her other sources of additional income (if any) before the total is reported on page 1 of her Form 1040.

c) The details of the transaction are reported on Form 8949, Sales and Other Dispositions of Capital Assets. The totals are then carried to Schedule D, Capital Gains and Losses. Finally, the net amount of her capital gain or deductible loss is reported on page 1 of her Form 1040.

d) Information about the transaction is reported directly on Schedule D, Capital Gains and Losses. The amount of her capital gain or deductible loss is then reported on page 1 of her Form 1040.

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