An Individual Has the Following Recognized Gains and Losses from Disposition

question 2

Multiple Choice

An individual has the following recognized gains and losses from disposition of § 1231 assets (all the assets were vacant land) : $15,000 gain, $10,000 loss, $25,000 gain, and $2,000 loss. The individual has a $5,500 § 1231 lookback loss. The individual also has a $16,000 net short-term capital loss from the disposition of stock. Which of the following statements is correct?

• A) The taxpayer has $5,500 ordinary gain and $6,500 net long-term capital gain.
• B) The taxpayer has $12,000 net long-term capital gain.
• C) The taxpayer has $28,000 ordinary gain and $16,000 net short-term capital loss.
• D) The taxpayer has $5,500 ordinary loss and $6,500 net long-term capital gain.
• E) None of the above.

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Definitions:

Fovea

A small depression in the retina of the eye where visual acuity is highest owing to the high concentration of cones, specialized for daylight vision, fine detail, and color.

Optic Nerve

The cranial nerve that transmits visual information from the retina to the brain, essential for sight.

Rods and Cones

Are photoreceptor cells in the retina of the eye that detect light and color, with rods being more sensitive to low light and cones responsible for color vision and detail.

Opponent Processes

A theory in psychology and neuroscience that suggests certain emotions or visual perceptions are produced through opposing pairs of colors or feelings.