The Following Assets in Jack's Business Were Sold in 2011

question 113

Multiple Choice

The following assets in Jack's business were sold in 2011: The office furniture had a zero adjusted basis and was purchased for $8,000.The automobile was purchased for $2,000 and sold for $1,200.The XYZ stock was purchased for $1,800 and sold for $3,200.In 2011 (the year of sale) ,Jack should report what amount of net capital gain and net ordinary income?

• A) $3,700 LTCG.
• B) $600 LTCG and $2,300 ordinary gain.
• C) $1,400 LTCG and $2,300 ordinary gain.
• D) $4,500 LTCG and $800 ordinary loss.
• E) None of the above.

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Definitions:

Social Cognition

A movement in social psychology that began in the 1970s that focused on thoughts about people and about social relationships.

Rowboat

A small boat propelled through water using oars, typically maneuvered by the occupants.

Effort

The use of physical or mental energy to achieve a goal or complete a task.

Three-Person Trip

an outing or journey undertaken by a group of three individuals together.