Joel Has Four Transactions Involving the Sale of Capital Assets

question 22

Multiple Choice

Joel has four transactions involving the sale of capital assets during the year resulting in a STCG of $5,000,a STCL of $12,000,a LTCG of $1,800 and a LTCL of $1,000.As a result of these transactions,Joel will

• A)deduct net losses of $6,200 against ordinary income.
• B)deduct losses of $3,000 against ordinary income and carry $3,200 of STCL forward.
• C)deduct losses of $3,000 against ordinary income and carry $3,200 of LTCL forward.
• D)deduct losses of $3,000 against ordinary income and carry $3,200 of losses back two years.

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Definitions:

Free Market Ethical Perspective

An ethical viewpoint that emphasizes the importance of allowing markets to operate without undue government interference, advocating for voluntary transactions and individual liberty.

Utilitarianism

A philosophical theory that posits the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Shareholder Well-being

The state of health, happiness, and prosperity of individuals who own shares in a corporation.

Stakeholders

Parties that have an interest or concern in an organization, which can affect or be affected by the business’s actions, objectives, and policies.