Ralph Is Single and Has the Following Items for the Current

question 72

Multiple Choice

Ralph is single and has the following items for the current year:
Nonbusiness capital gains
$ 9,000
Nonbusiness capital losses
(3,000)
Interest income
6,000
Itemized deductions (none of the amount resulted from a casualty loss)
(10,000)
​
In calculating Ralph's net operating loss,and with respect to the above amounts only,what amount must be added back to taxable income (loss) ?

• A)$0
• B)$2,000
• C)$3,000
• D)$4,000
• E)None of the above

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Definitions:

Unforeseeable Risks

Risks that cannot reasonably be anticipated or predicted, often affecting contracts or liability.

Reasonable Person Standard

A measurement of the way members of society expect an individual to act in a given situation.

Privilege

A special right, advantage, or immunity granted or available only to a particular person or group.

Defamation

A false communication that injures someone's reputation, either through written statements (libel) or spoken statements (slander).