Martha Has Both Long-Term and Short-Term 2016 Capital Gains and Losses

question 45

Multiple Choice

Martha has both long-term and short-term 2016 capital gains and losses. The result of netting these gains and losses is a net long-term capital loss. Martha has no qualified dividend income. Also, Martha's 2016 taxable income puts her in the 28% tax bracket. Which of the following is correct?

• A)Martha will use Parts I, II, and III of 2016 Form 1040 Schedule D.
• B)Martha will not benefit from the special treatment for long-term capital gains.
• C)Martha will have a capital loss deduction.
• D)All of the above.
• E)None of the above.

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Definitions:

Functional Manager

A manager responsible for a specific business function or department, such as marketing, finance, or human resources.

Accounts Department

The Accounts Department handles the financial record-keeping, including transactions, budgeting, and financial reporting within an organization.

Quality of Work Life

Concerns the overall environment, conditions, and satisfaction individuals experience in their workplace, including job security, work-life balance, and health and safety.

Accountability

The obligation of individuals or organizations to account for their activities, accept responsibility for them, and disclose the results in a transparent manner.