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.

---

Definitions:

Job Order Costing

An accounting system used to calculate the cost of individual jobs or batches, assigning manufacturing costs based on the specific jobs completed.

Automobile Tires

Rubber products specifically designed and manufactured for use on vehicles to provide traction and absorb road shock.

Process Costing

An accounting method used where identical or similar products are mass-produced, assigning average costs to each unit based on the total costs of production divided by the number of units produced.

Job Order Costing

A costing system used to accumulate costs for individual jobs or orders, typically used in industries where products are customized.