The Following Assets in Jack's Business Were Sold in 2014

question 51

Multiple Choice

The following assets in Jack's business were sold in 2014: $\begin{array}{lll}\text { Asset } &\text { Holding Period }&\text { Gain/(Loss) }\\\text { Office Equipment } & 6 \text { years } & \$ 1,100 \\\text { Automobile } & 8 \text { months } & (\$ 800) \\\text { ABC Stock (capital asset) } & 2 \text { years } & \$ 1,400\end{array}$ The office equipment had a zero adjusted basis and was purchased for $8,000. The automobile was purchased for $2,000 and sold for $1,200. The ABC stock was purchased for $1,800 and sold for $3,200. In 2014 (the year of sale) , Jack should report what amount of net capital gain and net ordinary income?

• A) $1,700 LTCG.
• B) $600 LTCG and $300 ordinary gain.
• C) $1,400 LTCG and $300 ordinary gain.
• D) $2,500 LTCG and $800 ordinary loss.
• E) None of these.

Comprehend the concept of privity and its implications for professional liability.

Recognize the significance of the Sarbanes-Oxley Act of 2002 for accountants and auditors.

Understand the ownership and confidentiality of work papers and documents in the professional context.

Differentiate between various types of damages and their applicability in cases of professional misconduct.

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Definitions:

Employment Equity Act

Legislation aimed at eliminating discrimination and promoting equal opportunity for all employees in the workplace.

Federal Government Departments

Organizational units within the federal government, responsible for specific areas of national policy, administration, and public service.

Private Sectors Employers

Organizations and entities that operate in the private sector, not owned or operated by the government, providing jobs to the workforce.

Banks And Broadcasters

Entities involved in financial services and media dissemination respectively, each playing key roles in their sectors.