Benjamin Has the Following Capital Gains and Losses for the Current

question 10

Multiple Choice

Benjamin has the following capital gains and losses for the current year:
$\begin{array}{llcc} \text {Long-term capital loss}&\$(13,000) \\ \text {Long-term capital gain}& 6,000\\ \text {Short-term capital loss}& (10,000) \\ \text {Short-term capital gain}&12,000 \\\end{array}$

What is Benjamin's net capital gain or loss for the year?

• A)Net long-term capital loss of $7,000.
• B)Net short-term capital gain of $2,000.
• C)Net long-term capital loss of $5,000.
• D)Net short-term capital gain of $1,000.
• E)Net long-term capital loss of $3,000.

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Definitions:

Extra Payments

Payments made on a loan that exceed the minimum required payment, often used to reduce the loan balance more quickly.

Compounded Monthly

A method of calculating interest in which the accrued interest is added to the principal sum every month, so that each subsequent interest calculation is based on a slightly higher amount.

Lifetime Interest

The total amount of interest that will be paid or earned over the entire life of a loan or investment.

Loan

A quantity of money that is lent and is supposed to be repaid along with an additional amount as interest.