Stella Has Two Transactions Involving the Sale of Capital Assets

question 136

Multiple Choice

Stella has two transactions involving the sale of capital assets during the year resulting in a STCL of $5,200 and LTCL of $2,400.As a result,Stella can offset

• A)$5,200 of ordinary income and have a LTCL carryforward of $2,400.
• B)$3,000 of ordinary income and have a $4,600 STCL carryforward.
• C)$3,000 of ordinary income and have a $2,200 STCL carryforward and $2,400 LTCL carryforward.
• D)$7,600 of ordinary income.

Understand cost-push and demand-pull inflation, including specific examples that can cause these types of inflation.

Identify the effects of unemployment benefits and Cost of Living Adjustments (COLAs) on individuals and the economy.

Describe the relationship between interest rates and inflation, particularly during times of inflation.

Analyze the impact of market forces and government actions on inflation rates and productivity.

---

Definitions:

Cash-Vouchers

These are instruments provided to individuals or entities which can be exchanged for goods or services instead of using actual cash.

Income Equality

The equal distribution of income among all members of society, aiming to reduce economic disparities.

Economic Efficiency

A situation in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Social Insurance Programs

Programs that replace the earnings lost when people retire or are temporarily unemployed, that are financed by payroll taxes, and that are viewed as earned rights (rather than charity).