Scott Bean Is a Computer Programmer and Incurred the Following

question 97

Essay

Scott Bean is a computer programmer and incurred the following transactions last year. $$\begin{array} { | l | r | r | r | r | } \hline & { \begin{array} { c } \text { Sales } \\\text { Price }\end{array} } & { \text { Basis } } & \text { Purchased } & { \text { Sold } } \\\hline \text { Provo City Bonds* } & \$ 10,000 & \$ 5,000 & 11 / 1 / 2010 & 5 / 2 / 2014 \\\hline \text { Cisco Preferred Stock } & 25,000 & 6,000 & 7 / 15 / 2005 & 1 / 12 / 2014 \\\hline \text { Dreyer's Grand Ice Cream Stock } & 14,000 & 10,000 & 7 / 1 / 2013 & 4 / 20 / 2014 \\\hline \text { Novell Common } & 2,000 & 10,000 & 2 / 12 / 2011 & 11 / 29 / 2014 \\\hline \text { IBM Stock } & 4,000 & 3,000 & 8 / 2 / 2002 & 5 / 2 / 2014 \\\hline \text { ABC Common } & 6,000 & 9,000 & 5 / 30 / 2012 & 10 / 20 / 2014 \\\hline & & & & \\\hline \text { Prior year ST Capital Loss Carryforward } & 5,500 & & & \\\hline \text { Prior year LT Capital Loss Carryforward } & 5,000 & & & \\\hline & & & & \\\hline { } ^ { * } \text { Purchased when originally issued by Provo } & & & & \\\text { City } & & & & \\\hline\end{array}$$ What is the Net Short-Term Capital Gain/Loss reported on the 2014 Schedule D? What is the Net Long-Term Capital Gain/Loss reported on the 2014 Schedule D? What amount of capital gain is subject to the preferential capital gains rate?

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Definitions:

Net Cash

The amount of cash remaining after all operating, investing, and financing activities have been accounted for over a specific period.

Investing Activities

Transactions related to the acquisition or sale of long-term assets and investments.

Noncurrent Assets

Assets intended for long-term use and not expected to be converted into cash within one year, such as equipment, real estate, and patents.

Direct Method

A cash flow statement reporting approach that lists major outgoing payments and incoming receipts during a period.