The Following Assets in Jack's Business Were Sold in 2018

question 50

Multiple Choice

The following assets in Jack's business were sold in 2018:
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 2018 (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.