An Individual Has the Following Recognized Gains and Losses from Disposition

question 45

Multiple Choice

An individual has the following recognized gains and losses from disposition of § 1231 assets (all the assets were vacant land) : $15,000 gain,$10,000 loss,$25,000 gain,and $2,000 loss.The individual has a $5,500 § 1231 lookback loss.The individual also has a $16,000 net short-term capital loss from the disposition of stock.Which of the following statements is correct?

• A)The taxpayer has $5,500 ordinary gain and $6,500 net long-term capital gain.
• B)The taxpayer has $12,000 net long-term capital gain.
• C)The taxpayer has $28,000 ordinary gain and $16,000 net short-term capital loss.
• D)The taxpayer has $5,500 ordinary loss and $6,500 net long-term capital gain.
• E)None of these.

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Definitions:

Retroactive Interference

A cognitive phenomenon where newly learned information interferes with the recall of previously learned information.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), most often associated with alcoholism.

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically seconds to minutes.

Long-Term Memory

The phase of memory responsible for storing information over extended periods, ranging from days to decades, allowing for retrieval of experiences, knowledge, and skills.