Serenity Has the Following Capital Gains and Losses for the Current

question 118

Multiple Choice

Serenity has the following capital gains and losses for the current year:
$\begin{array}{lr}\text { Short-term capital loss } & \$(8,000) \\\text { Long-term capital gain } & 3,000 \\\text { Collectible gain } & 2,000 \\\text { Collectible loss } & (4,000) \end{array}$
If Serenity is single and has taxable income from other sources of $75,000,what is the impact of her capital gains and losses on her income tax liability?

• A)$ 690 decrease.
• B)$ 750 decrease.
• C)$ 840 decrease.
• D)$1,050 decrease.
• E)$1,960 decrease.

---

Definitions:

Grammatical Errors

Mistakes made in the use of grammar, leading to incorrect structure or usage in written or spoken language.

Empirical Scrutiny

The examination and validation of hypotheses or theories through direct observation and experimentation, fundamental to the scientific method.

Tentative Statement

A provisional or not fully committed declaration, subject to further confirmation or investigation.

In-depth Study

An extensive and detailed examination of a subject to gain a deeper understanding of its aspects or nature.