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:

Standard Contract

A standard contract is a pre-drafted agreement using set terms and conditions, often used in routine business transactions where negotiation is minimal or not permitted.

Unilateral Mistake

A unilateral mistake occurs when only one party to a contract is mistaken about a basic assumption on which the contract is based.

Unilateral Mistake

A misunderstanding by one party in a contract that does not affect the other party's understanding, often not providing grounds for contract cancellation.

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A Stradivarius violin refers to one of the string instruments built by members of the Stradivari family, particularly by Antonio Stradivari, renowned for their superb craftsmanship and powerful sound qualities, highly prized and valuable.