For the Current Year, David Has Wages of $80,000 and the Following

question 138

Multiple Choice

For the current year, David has wages of $80,000 and the following property transactions: $\begin{array}{lr}\text { Stock investment sales- }\\\text { Long-term capital gain } & \$ 9,000 \\\text { Short-term capital loss } & (12,000) \\\text { Loss on sale of camper (purchased 4 years ago and used for family vacations) } & (2,000) \end{array}$ What is David's AGI for the current year?

• A)$76,000.
• B)$77,000.
• C)$78,000.
• D)$89,000.
• E)None of these.

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Definitions:

Outstanding Checks

Checks issued by a company that have not yet been cashed or cleared by the bank.

Deposits in Transit

Funds that have been received and recorded by a company but not yet credited by the bank, often seen in the reconciliation of bank statements.

Bank Statement Balance

The ending balance on a bank statement, representing the total amount of money in an account as recorded by the bank at the end of a given period.

Petty Cash Account

A small amount of cash kept on hand to pay for minor or incidental expenses.