The Following Assets in Jack's Business Were Sold in 2012

question 1

Multiple Choice

The following assets in Jack's business were sold in 2012: 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 2012 (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 the above.

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Definitions:

Self-Focused

Paying excessive attention to oneself, one’s needs, and one's personal experiences, sometimes at the expense of others.

Social Loneliness

A state of feeling disconnected and isolated from a social community or network, even when surrounded by people.

Older Individuals

Refers to people who are in the later stages of their life, typically considered to be of advanced age or elderly.

Friendship

A close and enduring relationship, marked by mutual affection, trust, support, and the enjoyment of each other's company.