Thoren Has the Following Items for the Year: $4,000 of Short-Term

question 10

Multiple Choice

Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20% long-term capital gain, and $1,500 of 28% capital loss. Which of the following is correct?

• A) The $1,500 loss will first be offset by the $4,000 short-term gain.
• B) The $1,500 loss will first be offset by the $5,000 long-term gain.
• C) The $4,000 short-term gain will first be offset by the $5,000 long-term gain.
• D) The taxpayer will have a net short-term capital loss.
• E) None of the above.

---

Definitions:

Henge

An arrangement of megalithic stones in a circle, often surrounded by a ditch.

Labyrinth

Maze. The English word derives from the mazelike plan of the Minoan palace at Knossos.

Neolithic Art

Artworks created during the Neolithic period, characterized by the development of agriculture, settled communities, and advancements in tool-making and architecture.

Honoring The Dead

Various practices and rituals performed to respect, remember, and pay tribute to deceased individuals, often reflecting cultural or religious beliefs.