ing Objective $5$

Question Content Area

Problem $4-3$

What is a Capital Asset?, Holding Period, Calculation of Gain or Loss, Net Capital Losses $($LO $4\mathrm{.}1,4\mathrm{.}2,4\mathrm{.}3,4\mathrm{.}5)$

Charu Khanna received a Form $1099-$B showing the following stock transactions and basis during $2023$:

$2023$ Combined Forms $1099$

This is important tax information and is being furnished to the IRS $($except as indicated$).$ If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported

Copy B for Recipient

OMB No$.1545-0110$

Friar Tuck Investments

$38$ Wall Street, $8$th Floor

New York, NY $10005$

Account Number Tax ID

Charu Khanna $56-12311789***-**-4023$

$206$ Commonwealth Ave, Apt $3$B$.$ Payer's Federal Tax ID

Boston, MA $0211633-1357246$

Financial Adviser$/$Phone

John Little $888-555-1212$

Form $1099-$B Proceeds from Broker and Barter Exchange Transactions

Box $6$: Gross Proceeds Box $5$: Not checked Box $3$: Basis reported to IRS Box $2$: Type of Gain or Loss: Short$-$term

Box $1$ Security

description $($CUSIP$)$ Quantity sold Box $1$b Date

acquired Box $1$c Date sold

or disposed Box $1$d

Proceeds Box $1$e Cost or

other basis Box $1$g Wash

sale loss

disallowed Gain$/($Loss$)$

amount

Gold Corp $50002/12/202309/05/202340,00052,500-(12,500)$

Orange Corp $10011/15/202207/12/202321,00019,2001,800$

Box $6$: Gross Proceeds Box $5$: Not checked Box $3$: Basis reported to IRS Box $2$: Type of Gain or Loss: Long$-$term

Box $1$ Security

description $($CUSIP$)$ Quantity sold Box $1$b Date

acquired Box $1$c Date sold

or disposed Box $1$d

Proceeds Box $1$e Cost or

other basis Box $1$g Wash

sale loss

disallowed Gain$/($Loss$)$

amount

Green Corp $4,00006/04/201208/05/20239,5003,200-6,300$

Blue Corp $5002/04/201310/01/202316,00021,700(5,700)$

None of the stock is qualified small business stock. The stock basis was reported to the IRS.

Calculate Charu's net capital gain or loss using Schedule D and Form $8949.$