Carol Had the Following Transactions During 2019: a Painting Held

question 87

Essay

Carol had the following transactions during 2019: a painting held for two years and sold at a gain of $85,000? 100 shares of Gray stock held six months and sold for a loss of $6,000? 50 shares of Yellow stock held 18 months and sold for a gain of $36,000.Carol also had $264,000 of taxable income from other sources than these property transactions.What is Carol's net capital gain or loss and what is her taxable income?

---

Definitions:

Profitable

Refers to a financial state where income exceeds expenses, resulting in a positive gain.

Accounting Equation

The foundation of double-entry bookkeeping, which asserts that assets equal the sum of liabilities and shareholders' equity.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities; it represents the ownership interest of the shareholders or owner in the company.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity.