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 Comparison

The tendency to compare and judge one’s abilities, achievements, and behaviors in relation to others.

Self-esteem

An individual's subjective evaluation of their own worth and capabilities.

Social Status

The position or rank of a person or group within the social hierarchy, often influenced by wealth, occupation, or family heritage.

Self-concept

An individual's perception of themselves, encompassing beliefs, feelings, and knowledge about one's abilities, appearance, and social worth.