Seamus Had $16,000 of Net Short-Term Capital Loss in 2011

question 106

Multiple Choice

Seamus had $16,000 of net short-term capital loss in 2011. In 2012, Seamus has $17,000 of long-term capital loss and $26,000 of long-term capital gain. Which of the following statements is correct?

• A)Seamus had a $13,000 short-term capital loss carryover to 2012.
• B)Seamus has an $9,000 2012 net long-term capital gain.
• C)Seamus has a $4,000 2012 net short-term capital loss.
• D)a.and c.
• E)None of the above.

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Definitions:

Compounded Quarterly

A method where interest is added to the principal amount of an investment or loan at the end of every three months, leading to interest earning interest.

Deferred Annuity

A financial product that delays payments of income, installments, or a series of payments until a specified future date.

Ordinary Annuity

A sequence of identical disbursements done at consecutive period ends over a predefined duration.

Perpetuity

A type of annuity that generates an infinite series of future payments, theoretically lasting forever.