In 2018, Jenny Had a $12,000 Net Short-Term Capital Loss

question 77

Multiple Choice

In 2018, Jenny had a $12,000 net short-term capital loss and deducted $3,000 as a capital loss deduction.In 2019, Jenny has a $18,000 0%/15%/20% long-term capital gain and no other capital gain or loss transactions.Which of the statements below is correct for 2019?

• A)Jenny has a $18,000 net capital gain.
• B)Jenny has a $9,000 net capital gain.
• C)Jenny has a $9,000 net capital loss.
• D)Jenny has a $3,000 capital loss deduction.
• E)Jenny has a $9,000 capital loss deduction.

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Definitions:

Dual Federalism

The political arrangement in which state governments and the federal government exercise exclusive and separate powers, as opposed to sharing authority or collaborating on decisions.

Cooperative Federalism

A concept of federalism wherein national, state, and local governments work together to solve problems and create policies.

Federal System

A form of government in which power is divided between a central authority and several regional or state governments.

Unitary Systems

A form of government where a single central authority has the ultimate power, with any administrative divisions (if they exist) subservient to it.