In 2017, Jenny Had a $12,000 Net Short-Term Capital Loss

question 158

Multiple Choice

In 2017, Jenny had a $12,000 net short-term capital loss and deducted $3,000 as a capital loss deduction. In 2018, Jenny has a $18,000 0%/15%/20% long-term capital gain and no other capital gain or loss transactions. Which of the statements below is correct for 2018?

• A) Jenny has a $18,000 net capital gain.
• B) Jenny has a $9,000 net capital gain.
• C) Jenny has a $9,000 net capital loss.
• D) Jenny has a $3,000 capital loss deduction.
• E) Jenny has a $9,000 capital loss deduction.

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Definitions:

Proportion

The fraction of a whole that represents a part of the total population or quantity.

Data Values

The individual pieces of information collected in a study or used in calculations, which can be numerical or categorical.

Histogram

A graphical representation of the distribution of numerical data, with bars showing the frequency of data in successive intervals.

Observation

An observation is a record or a piece of data collected during an experiment or survey, representing one instance or example of a variable of interest.