A Taxable Entity Has the Following Capital Gains and Losses $\begin{array} { l } \text {Short-term capital loss }&\$(22,000)\\ \text {Long-term capital gain }&15,000\\\end{array}$

question 120

Multiple Choice

A taxable entity has the following capital gains and losses in 2013:
$\begin{array} { l } \text {Short-term capital loss }&\$(22,000) \\ \text {Long-term capital gain }&15,000\\\end{array}$

I
If the entity is an individual,a $3,000 deduction is allowed in 2013.
II) If the entity is a corporation,a $7,000 deduction is allowed in 2013.

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Fugitive Slave Law

Legislation passed in the United States that required the capture and return of runaway slaves.

Sectional Controversy

Disputes and divisions in the United States, particularly between the North and South, over issues like slavery, tariffs, and states' rights, which ultimately led to the Civil War.

Fugitive Slave Act

Legislation passed by the United States Congress in 1850 that mandated the return of escaped slaves to their owners even if they were in a free state.

Texas Boundary

The Texas boundary disputes involved disagreements over the territorial limits of Texas, significantly those with Mexico, before and after Texas became a U.S. state in 1845.