A Taxable Entity Has the Following Capital Gains and Losses $\begin{array}{lc}\text { Short-term capital loss } &\$(22,000) \\\text { Long-term capital gain } &13,000\end{array}$

question 104

Multiple Choice

A taxable entity has the following capital gains and losses in 2013:
$\begin{array}{lc}\text { Short-term capital loss } &\$(22,000) \\\text { Long-term capital gain } &13,000\end{array}$


I. If the entity is an individual, a $\$ 7,000$ deduction is allowed in 2013.
II. If the entity is a corporation, no deduction is allowed in 2013.

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Comprehensive

Inclusive, covering completely or broadly, often describing an extensive or thorough approach or assessment.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Sensory-Specific Satiety

The reduced satisfaction or interest in a specific taste or type of food after consuming a significant amount of it, leading to a desire for flavor variety.

Mental Accounting

The cognitive process by which people categorize, evaluate, and keep track of financial activities, often leading to irrational financial behaviors.