a) On May 8, they recognized an $8,900 short-term capital gain. On June 25, they

ID: 2380730 • Letter: A

Question

a) On May 8, they recognized an $8,900 short-term capital gain. On June 25, they recognized a $15,000 long-term capital loss.

b) On February 11, they recognized a $2,100 long-term capital gain. On November 3, they recognized a $1,720 long-term capital loss.

c) On April 2, they recognized a $5,000 long-term capital loss. On September 30, they recognized a $4,800 short-term capital loss.

d) On January 12, they recognized a $5,600 short-term capital loss. On July 5, they recognized a $1,500 long-term capital gain.

a) AGI = adjusted gross income

so it will be earlier AGI +(revenue-expenses)

also short term gain is taken as ordinary income not used for AGI calculation

short term loss is deduactible but upto 3000 only. per year

long term gains are added usually.

long term losses are limited to 3000. per year

128000 + (0-3000) = 125000

b) 128000 + ( 2100-1720) =128380

c) 128000 + (-3000-3000) = 122000

d)128000 ( 1500-3000) = 126500

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