This Year,Ms

question 91

Multiple Choice

This year,Ms.Kwan recognized a $16,900 net long-term capital loss.Which of the following statements is true?

• A)Ms.Kwan has a $16,900 long-term capital loss carryforward into future years.
• B)Ms.Kwan has a $16,900 nondeductible loss that she can carry back three years and forward five years.
• C)Ms.Kwan can deduct $3,000 of the loss as an itemized deduction.
• D)None of the above is true.

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Definitions:

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, representing the discount rate that makes the net present value of all cash flows equal to zero.

Net Present Value

The variance between the current value of cash coming in and the current value of cash going out over a time span.

Discount Rate

The interest rate used in determining the present value of future cash flows or in evaluating the attractiveness of an investment.

Project Cash Flows

The net amount of cash that is generated or expended by a particular project or investment, after accounting for all inflows and outflows.