The following assets in Donald's business were sold in 2021: Asset Office equipment Automobile ABC stock...
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The following assets in Donald's business were sold in 2021: Asset Office equipment Automobile ABC stock (capital asset) Holding Period 6 years 8 months 2 years Gain/(Loss) $10,000 ($1,000) $1,500 Office equipment, purchased for $8,000, had a zero adjusted basis. The automobile was purchased for $2,000 and sold for $1,000. The ABC stock was purchased for $1,800 and sold for $3,300. In 2021 (the year of sale), Donald should report what amount of net capital gain and net ordinary income? O a $10,500 LTCG. O b. $3,500 LTCG and $7,000 ordinary gain. O $11,500 LTCG and $1,000 ordinary loss. Od. $2,500 LTCG and $8,000 ordinary gain. e. None of the above The following assets in Donald's business were sold in 2021: Asset Office equipment Automobile ABC stock (capital asset) Holding Period 6 years 8 months 2 years Gain/(Loss) $10,000 ($1,000) $1,500 Office equipment, purchased for $8,000, had a zero adjusted basis. The automobile was purchased for $2,000 and sold for $1,000. The ABC stock was purchased for $1,800 and sold for $3,300. In 2021 (the year of sale), Donald should report what amount of net capital gain and net ordinary income? O a $10,500 LTCG. O b. $3,500 LTCG and $7,000 ordinary gain. O $11,500 LTCG and $1,000 ordinary loss. Od. $2,500 LTCG and $8,000 ordinary gain. e. None of the above
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Capital Loss on sale of Automobile 1000 Capital Gain on sal... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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