In 2019, Isabella Sold Several Shares of Different Stocks Held

question 34

Multiple Choice

In 2019, Isabella sold several shares of different stocks held for investment.The following is a summary of her capital transactions for the year: $\begin{array}{lrrrr}\underline{\text { Stock }}&\underline{\text { Purchased }} &\underline{\text { Sold }}&\underline{ \text { Selling Price }} &\underline{\text { Cost }}\\\mathrm{ABC} &02 / 15 / 19 &07 / 15 / 19 & \$ 2,200 & \$ 1,750 \\\mathrm{DEF} & 10 / 25 / 12 & 08 / 01 / 19 & 3,500 & 2,300 \\\mathrm{GHI} & 10 / 25 / 19 & 12 / 15 / 19 & 800 & 1,000 \\\mathrm{JKL} & 12 / 28 / 13 & 12 / 18 / 19 & 750 & 900\end{array}$
What is the amount of Isabella's net capital gains or losses for 2019?

• A)$1,300 long-term capital gain
• B)$850 long-term capital gain and $450 short-term capital gain
• C)$1,050 long-term capital loss and $250 short-term capital loss
• D)$1,050 long-term capital gain and $250 short-term capital gain

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Definitions:

Optimizing

The process of making something as effective, perfect, or functional as possible within given constraints.

Heuristic

This term refers to a practical approach to problem-solving, learning, or discovery that employs a practical method not guaranteed to be optimal but sufficient for reaching an immediate goal.