Warren's 2016 Adjusted Gross Income Consists of the Following Items

question 59

Multiple Choice

Warren's 2016 adjusted gross income consists of the following items: ​
Warren's combined §1231 gains and losses recognized over the prior five tax years included a net loss of $10,000.The STCL carryover arose from a loss reported in 2011.
What net amounts of ordinary income,LTCG income and STCG income will Warren's 2016 adjusted gross income consist of? (i.e.what amounts are reported after completing the netting process?)
Ordinary
Income LTCG STCG

• A)$208,000 $16,000 $- 0 -
• B)$217,000 $14,000 $(7,000)
• C)$208,000 $23,000 $(7,000)
• D)$217,000 $7,000 $- 0 -

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Definitions:

Market Control

The ability of a single entity or a few entities to significantly influence the conditions or terms in a particular market.

Input Standards

Pre-defined criteria or benchmarks used to measure the quality, quantity, or timeliness of inputs in a production or manufacturing process.

Output Standards

Benchmarks set to measure the quantity, quality, or performance of a product or service produced.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to a normal good.