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

question 7

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:

Schaie's Model

A theory of cognitive development that outlines how thinking and problem solving abilities change over the course of a person’s life.

Postconventional Morality

The highest stage in Kohlberg's model of moral development, in which individuals make ethical decisions based on universal principles of justice and rights.

Kohlberg

Refers to Lawrence Kohlberg, a psychologist known for his theory of moral development.

Investigative Commitment

refers to a deep and systematic engagement in exploring or examining a subject or phenomenon to gain insights or find answers.