In 2014, Rosalva sold stock considered short-term for a gain of $1,290 and stock considered long-term for a loss of $3,680. She also had a $3,770 short-term loss carryover from 2013 and a $1,295 long-term loss carryover from 2013.
a.What amount will be shown as a short-term gain (loss) for 2014?
b.What amount will be shown as a long-term gain (loss) for 2014?
c.How much of the loss is deductible in 2014?
d.What is the amount of long term carryover to 2015?
The investment or the assets which have been held for more than a year and if the loss occurs on that investment or asset then we call it the long-term loss.
Answer and Explanation:
a) What amount will be shown as a short-term gain (loss) for 2014?
short-term gain (loss) = Short term loss carryover from 2013 - Gain from 2014
= $3,770 - $1,290
= $2,480 (Its a short-term loss)
b) b. What amount will be shown as a long-term gain (loss) for 2014?
long-term gain (loss) for 2014 = Loss carryover from 2013 + loss in 2014
= $1,295 + $3,680
= $3,975 ( its a long term loss for 2014)
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from Business 100: Intro to BusinessChapter 23 / Lesson 4