A Capital Loss Is Computed by

question 3

Multiple Choice

A capital loss is computed by

• A) subtracting the original cost of an investment from the proceeds received from the sale of that investment.
• B) subtracting the original cost of an investment from the proceeds received from the sale of that investment minus any income from the investment.
• C) subtracting the original cost of an investment from the proceeds received from the sale of that investment plus any income from the investment.
• D) subtracting the proceeds received from the sale of an investment from the original cost of the investment.

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Definitions:

Extrinsic

Originating from outside an individual, often referring to motivations or rewards that are external rather than internal.

Implicit

Something implied or understood though not directly expressed.

Explicit

Something stated clearly and in detail, leaving no room for confusion or doubt.

Metaphorical

Pertaining to or characterized by metaphor; using figures of speech that imply a comparison between unlike entities.