During the Current Year, F, an Individual, Had Long-Term Capital

question 37

Multiple Choice

During the current year, F, an individual, had long-term capital losses of $2,000 and short-term capital losses of $1,500.If this is the first year F has experienced capital gains or losses, what amount of these losses may F deduct this year?

• A)$1,750
• B)$2,500
• C)$3,000
• D)$3,500

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Definitions:

Pro Forma Net Income

A projected net income over a specific period, calculated under hypothetical assumptions or adjustments.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the costs of goods sold, indicating the profitability of a company.

Sales Decrease

A reduction in the amount of goods or services sold by a business within a specific time period.

Equity Financing

The method of raising capital through the sale of shares, offering investors ownership interests in the company.