On June 19, Year 1, an individual executed a short sale of 100 shares of stock at $10 per share.On June 19, Year 2, the individual covered and delivered the 100 shares at $8 per share.What is the character of gain or loss on the short sale?

A.

$200 long-term capital gain.

B.

$200 long-term capital loss.

C.

$200 short-term capital gain.

D.

$200 short-term capital loss.

In year 7, MMI Corporation incurred net capital losses that amounted to $15,000. During the period from year 1, its year of inception, through year 6, MMI had net capital gains of $1,000 each year. How much capital loss may MMI carry forward to year 8?

A.

$9,000

An individual had the following gains and losses for the year:

Short-term capital loss

$30,000

Section 1231 loss

$20,000

Long-term capital gain (unrecaptured Section 1250 at 25%)

$18,000

Collectibles gain (28% rate)

$20,000

Long-term capital gain (15% rate)

$15,000