In the Current Year, Norris, an Individual, Has $50,000 of Ordinary

question 59

Multiple Choice

In the current year, Norris, an individual, has $50,000 of ordinary income, a net short-term capital loss (NSTCL) of $10,000, and a net long-term capital gain (NLTCG) of $2,800. From his capital gains and losses, Norris reports:

• A)an offset against ordinary income of $10,000.
• B)an offset against ordinary income of $3,000 and an NSTCL carryforward of $7,000.
• C)an offset against ordinary income of $2,800 and an NSTCL carryforward of $7,200.
• D)an offset against ordinary income of $3,000 and an NSTCL carryforward of $7,200.
• E)an offset against ordinary income of $3,000 and an NSTCL carryforward of $4,200.

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Definitions:

Herbert Simon

An economist, political scientist, and cognitive psychologist who made significant contributions to the fields of artificial intelligence, economics, and cognitive psychology, and who was awarded the Nobel Prize in Economics in 1978.

Comprehensive

Inclusive, covering completely or broadly, often describing an extensive or thorough approach or assessment.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Sensory-Specific Satiety

The reduced satisfaction or interest in a specific taste or type of food after consuming a significant amount of it, leading to a desire for flavor variety.