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28 January, 14:17

In X8, Erin had the following capital gains (losses) from the sale of her investments: $2,000 LTCG, $25,000 STCG, ($9,000) LTCL, and ($15,000) STCL. What is the amount and nature of Erin's capital gains and losses?

a. $3,000 net short-term capital gain

b. $3,000 net long-term capital loss

c. $4,000 net short-term capital gain

d. $4,000 net long-term capital loss

e. None of these

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  1. 28 January, 15:47
    0
    a. $3,000 net short-term capital gain

    Explanation:

    The computation of the amount of the capital gains and losses is shown below:

    = Long term capital gain - long term capital loss

    = $2,000 - $9,000

    = - $7,000

    = Short term capital gain - short term capital loss

    = $25,000 - $15,000

    = $10,000

    After equating these above values the balance would be $3,000 and considered as a short term capital gain
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