In 2014,Jenny Had a $12,000 Net Short-Term Capital Loss and Deducted

question 72

Multiple Choice

In 2014,Jenny had a $12,000 net short-term capital loss and deducted $3,000 as a capital loss deduction.In 2015,Jenny has a $18,000 0%/15%/20% long-term capital gain and no other capital gain or loss transactions.Which of the statements below is correct?

• A)Jenny has a 2015 $18,000 net capital gain.
• B)Jenny has a 2015 $9,000 net capital gain.
• C)Jenny has a 2015 $9,000 net capital loss.
• D)Jenny has a 2015 $3,000 capital loss deduction.
• E)Jenny has a 2015 $9,000 capital loss deduction.

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Definitions:

Market Demand

The total quantity of a product or service that consumers are willing and able to purchase at various prices within a certain timeframe.

Bertrand Duopoly

An economic model where two companies compete solely on price, leading to a situation where prices tend toward the cost of production.

Optimal Prices

The price point at which a business can sell its goods or services to maximize its profit margin without losing demand.

Homogenous Goods

Products that are essentially identical, where each unit is the same as every other unit in terms of attributes and quality.