Martha Has a Net Capital Loss of $20,000 and Other

question 55

Multiple Choice

Martha has a net capital loss of $20,000 and other ordinary taxable income of $45,000 for the current tax year.What is the amount of Martha's taxable income after deducting the allowed capital loss?

• A)$25,000
• B)$35,000
• C)$42,000
• D)$45,000
• E)None of the above

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Definitions:

Phosphate

A chemical derivative of phosphoric acid, containing the phosphate ion, PO4^3-, which plays a significant role in biological molecules such as DNA and ATP.

Sulfur

A chemical element that is a nonmetal, yellow in color, with the atomic number 16, commonly found in minerals and used in various industrial processes.

Nitrogen

A chemical element with symbol N and atomic number 7, essential for all living organisms as it is a major component of amino acids and nucleic acids.