Joel Has Four Transactions Involving the Sale of Capital Assets

question 1642

Multiple Choice

Joel has four transactions involving the sale of capital assets during the year resulting in a STCG of $5,000, a STCL of $12,000, a LTCG of $1,800 and a LTCL of $1,000. As a result of these transactions, Joel will

• A) deduct losses of $3,000 against ordinary income and carry $3,200 of LTCL forward.
• B) deduct net losses of $6,200 against ordinary income.
• C) deduct losses of $3,000 against ordinary income and carry $3,200 of STCL forward.
• D) deduct losses of $3,000 against ordinary income and carry $3,200 of losses back two years.

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Definitions:

Verbal Skills

The capabilities associated with expressing ideas and information effectively through spoken words.

Bodily-Kinesthetic Skills

Physical abilities that involve movement and coordination of the body, such as balance, agility, and strength.

Eight Types of Intelligence

Refers to Howard Gardner's theory of multiple intelligences, which posits that individuals have different kinds of intelligences, including logical-mathematical, linguistic, spatial, musical, bodily-kinesthetic, interpersonal, intrapersonal, and naturalistic.

Gardner

Howard Gardner, an American developmental psychologist best known for his theory of multiple intelligences, suggesting that there are several distinct forms of intelligence.