In the Current Year, Norris, an Individual, Has $50,000 of Ordinary

question 59

Multiple Choice

In the current year, Norris, an individual, has $50,000 of ordinary income, a net short-term capital loss (NSTCL) of $10,000, and a net long-term capital gain (NLTCG) of $2,800. From his capital gains and losses, Norris reports:

• A)an offset against ordinary income of $10,000.
• B)an offset against ordinary income of $3,000 and an NSTCL carryforward of $7,000.
• C)an offset against ordinary income of $2,800 and an NSTCL carryforward of $7,200.
• D)an offset against ordinary income of $3,000 and an NSTCL carryforward of $7,200.
• E)an offset against ordinary income of $3,000 and an NSTCL carryforward of $4,200.

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Definitions:

Business Organizations

Entities formed for the purpose of carrying on a commercial enterprise, including sole proprietorships, partnerships, corporations, and other types.

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Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting.

Main Groups

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