In 2011, Jenny Had a $12,000 Net Short-Term Capital Loss

question 37

Multiple Choice

In 2011, Jenny had a $12,000 net short-term capital loss and deducted $3,000 as a capital loss deduction.In 2012, Jenny has a $18,000 0%/15% long-term capital gain and no other capital gain or loss transactions.Which of the statements below is correct?

• A)Jenny has a 2012 $18,000 net capital gain.
• B)Jenny has a 2012 $9,000 net capital gain.
• C)Jenny has a 2012 $9,000 net capital loss.
• D)Jenny has a 2012 $3,000 capital loss deduction.
• E)Jenny has a 2012 $9,000 capital loss deduction.

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Definitions:

Half-Life

The time required for a quantity to reduce to half its initial value, often used in the context of radioactive decay.

\(24\left(\frac{1}{2}\right)^{\frac{t}{30}}\)

An exponential function representing the decay or growth of a quantity, where 24 is the initial value, \(\frac{1}{2}\) is the base of the exponent signifying decay, and \(\frac{t}{30}\) is the exponent indicating time or another variable at which the decay occurs.

U.S. Census Bureau

The federal agency responsible for collecting and analyzing data about the American people and economy.

\(203.0(1.0107)^t\)

This expression models exponential growth or decay, depending on the context, where 203.0 is the initial quantity, 1.0107 represents the growth (or decay) rate, and \(t\) is the time variable.