The Following Assets in Jack's Business Were Sold in 2018

question 100

Short Answer

The following assets in Jack's business were sold in 2018: The office equipment had a zero adjusted basis and was purchased for $8,000.The automobile was purchased for $2,000 and sold for $1,200.The ABC stock was purchased for $1,800 and sold for $3,200.In 2018 the year of sale), Jack should report what amount of net capital gain and net ordinary income?
A)$1,700 LTCG.
B)$600 LTCG and $300 ordinary gain.
C)$1,400 LTCG and $300 ordinary gain.
D)$2,500 LTCG and $800 ordinary loss.
E)None of the above.

• A)$1,700 LTCG.
• B)$600 LTCG and $300 ordinary gain.
• C)$1,400 LTCG and $300 ordinary gain.
• D)$2,500 LTCG and $800 ordinary loss.
• E)None of the above.

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Definitions:

Limitations

Restrictions or constraints that limit or define the boundaries of possibilities or actions.

Justification of Effort Effect

A cognitive bias that leads individuals to value an outcome more if they had to put effort into achieving it.

Therapeutic Alliance

The collaborative and trusting relationship between a therapist and client, considered essential for effective therapy.

Placebo Effect

A phenomenon in which a person experiences a perceived improvement in condition due to their expectations, rather than the effect of an active medical treatment.