Thoren Has the Following Items for the Year: $4,000 of Short-Term

question 29

Multiple Choice

Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20% long-term capital gain, and $1,500 of 28% capital loss.Which of the following is correct?

• A)The $1,500 loss will first be offset by the $4,000 short-term gain.
• B)The $1,500 loss will first be offset by the $5,000 long-term gain.
• C)The $4,000 short-term gain will first be offset by the $5,000 long-term gain.
• D)The taxpayer will have a net short-term capital loss.
• E)None of these.

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Definitions:

Previous Year

The year immediately before the current year, often referenced in discussions of past events or analyses of trends.

Negative Interference

A phenomenon where one set of learning interferes negatively with the performance or acquisition of another set.

Relearning

The process of learning information, skills, or behaviors again, which typically occurs faster than the initial learning.

Measures Retention

The process of assessing and quantifying the degree to which information, skills, or behaviors are maintained over time.