This Year, Ms

question 101

Multiple Choice

This year, Ms. Kwan recognized a $16,900 net long-term capital loss. Which of the following statements is true?

• A) Ms. Kwan has a $16,900 long-term capital loss carryforward into future years.
• B) Ms. Kwan has a $16,900 nondeductible loss that she can carry back three years and forward five years.
• C) Ms. Kwan can deduct $3,000 of the loss as an itemized deduction.
• D) None of these choices are true.

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Definitions:

Wasting Assets

Resources that decrease in value over time due to physical deterioration or depletion, such as minerals, oil reserves, or patents.

Units-of-production Method

A depreciation method that allocates an asset's cost based on its use or output during the period, considering the number of units produced.