In 2015, Paul, a Single Taxpayer, Has Taxable Income of $30,000

question 3

Multiple Choice

In 2015, Paul, a single taxpayer, has taxable income of $30,000 exclusive of capital gains and losses. Paul incurred a $1,000 short-term capital loss and a $4,000 long-term capital loss. What is the amount of his long-term capital loss carryover to 2016?

• A)$0
• B)$2,000
• C)$3,000
• D)$5,000
• E)None of the above

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Definitions:

Capital Projects

Large, long-term investments undertaken by a company or government to create, expand, or improve physical assets such as buildings, infrastructure, or equipment.

Total Assets

The sum of all assets owned by a company, including both current and non-current assets, as reported on the balance sheet.

Stock Repurchase

A company's buyback of its own shares from the marketplace, usually to increase the value of remaining shares by reducing supply.

Book Value

The net value of a company's assets, subtracting its liabilities and intangible assets, often used to assess whether a stock is under- or overvalued.