In 2016, Creeper Corporation Had a $4,000 Net Long-Term Capital

question 174

Multiple Choice

In 2016, Creeper Corporation had a $4,000 net long-term capital loss which it could not carry back. For 2017, it had the following capital transactions: ​
As a result of these transactions, for 2017 Creeper has a:

• A)Net short-term capital gain of $1,000.
• B)Net short-term capital gain of $3,000.
• C)Net long-term capital gain of $1,000.
• D)Carryover to 2018 of $2,000 long-term capital loss.
• E)None of the above.

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Definitions:

Marginal Returns

The additional output gained by employing an additional unit of a resource.

Labor

The measure of the work done by human beings in the economy, often referred to in terms of hours worked or total workforce.

Capital

Refers to the financial assets or resources that businesses use to fund their operations and grow, including cash, equipment, and buildings.

Increasing Returns

A concept in economics where an increase in the scale of production leads to a greater than proportional increase in output.