In 2011,Creeper Corporation Had a $4,000 Net Long-Term Capital Loss

question 138

Multiple Choice

In 2011,Creeper Corporation had a $4,000 net long-term capital loss which it could not carry back.For 2012,it had the following capital transactions: As a result of these transactions,for 2012 Creeper has a:

• A) Net short-term capital gain of $1,000.
• B) Net short-term capital gain of $3,000.
• C) Net long-term capital gain of $1,000.
• D) Carryover to 2013 of $2,000 long-term capital loss.
• E) None of the above.

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay, indicating the benefit consumers receive from purchasing at a market price lower than their maximum willingness to pay.

Ice Cream Cones

Frozen dessert treats served in a conical wafer, typically made by filling the cone with scoops of ice cream from one or more flavors.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing a measure of consumer benefit.

Walmart

An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.