In 2011, Jenny Had a $12,000 Net Short-Term Capital Loss

question 37

Multiple Choice

In 2011, Jenny had a $12,000 net short-term capital loss and deducted $3,000 as a capital loss deduction.In 2012, Jenny has a $18,000 0%/15% long-term capital gain and no other capital gain or loss transactions.Which of the statements below is correct?

• A)Jenny has a 2012 $18,000 net capital gain.
• B)Jenny has a 2012 $9,000 net capital gain.
• C)Jenny has a 2012 $9,000 net capital loss.
• D)Jenny has a 2012 $3,000 capital loss deduction.
• E)Jenny has a 2012 $9,000 capital loss deduction.

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Definitions:

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities.

Financial Reports

Periodic statements that provide information about a company's financial status, including balance sheets, income statements, and cash flow statements.

Primary Financial Statements

Critical financial documents including the balance sheet, income statement, statement of cash flows, and statement of shareholders' equity, which provide an overview of a company's financial health.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, culminating in the net profit or loss.