Exercise 3-23 (Algorithmic) (LO. 8) Determine the net effect on Tamara\'s adjust

Question

Exercise 3-23 (Algorithmic) (LO. 8) Determine the net effect on Tamara's adjusted gross income with regard to these capital asset transactions that occurred this year. Sold ABCCo stock, acquired 2 years ago, for a $4,350 loss. Sold collectible coins, held for 17 months, for a $6,090 gain. Sold XYZCo shares, acquired 6 months ago, for a $12,180 loss. Sold LMNCo stock, acquired 3 years ago, for a $1,523 gain. and a As a result of these transactions, Tamara has a net short-term capital gaino long-term capital loss of Overall, Tamara has a net long-term capital lossof Next Check My Work 2 more Check My Work uses remaining MacBook Air

Explanation / Answer

Solution:

Tamara has a net long term capital gain of $3,263 and a short term capital loss of $12,180. Overall Tamara has a has a net short term capital loss of $8917

Working:

Short term capital loss: $12,180

Net short term capital loss: 4350 + 6090 - 1523= $8917

Net long term capital gain : 12,180 - 8917 = 3,263

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