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In 2014, Rosalva sold stock considered short-term for a gain of $1,290 and stock considered...

Question:

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?

Long-term loss:

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)


Learn more about this topic:

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Sources of Long-Term Financing

from Business 100: Intro to Business

Chapter 23 / Lesson 4
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