5 percent a 10 percent b 15 percent c 20 percent d 28 percent e During 2010

# 5 percent a 10 percent b 15 percent c 20 percent d 28

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5 percent. a. 10 percent. b. 15 percent. c. 20 percent. d. 28 percent. e. During 2010, Randy Rooney recognizes a \$13,000 short-term capital loss, an \$8,000 long-term capital loss and a 95. \$9,000 short-term capital gain. What is the amount and nature of Randy’s capital loss carryover to 2011? \$4,000 short-term, \$8,000 long-term. a. \$4,000 short-term; \$5,000 long-term. b. \$1,000 short-term; \$5,000 long-term. c. \$1,000 short-term; \$8,000 long-term. d. none of the above. e.
594 CCH Federal Taxation—Basic Principles Chapter 12 © 2010 CCH. All Rights Reserved. Land used in the taxpayer’s business is sold during the years. If the land was purchased nine months ago 96. for \$60,000 and is sold for \$95,000, what is the character of the \$30,000 recognized gain? 97. ago for \$175,000. How is the loss treated on Tony’s tax return? 98. \$175,000. How is the loss treated on Tom’s tax return if he files a joint tax return with his spouse? 99. and a \$6,000 short-term capital gain. Prior to considering these capital gains and losses, Hattie’s adjusted gross income equals \$50,000. After taking its capital gains and losses into consideration, her income equals: \$56,000. a. \$50,000. b. \$45,000. c. \$47,000. d. \$34,000. e. During 2010, Greta Gibson recognizes a \$2,000 short-term capital gain, a \$6,000 short-term capital loss, a 100. \$20,000 long-term capital gain, and a \$7,000 long-term capital loss. Greta’s net capital gain is: \$9,000. a. \$13,000. b. \$14,000. c. \$16,000. d. Mike Mitchell had the following capital transaction during the current tax year: 101. Short-term Long-term Gains \$6,000 \$23,000 Losses (\$9,000) (\$10,000) What portion of Mike’s capital gains is included in his adjusted gross income? \$2,000 a. \$3,000 b. \$4,000 c. \$5,000 d. \$10,000 e.
595 Testbank © 2010 CCH. All Rights Reserved. Chapter 12 In 2010, Greg Goodrich had taxable income of \$100,000. This amount included short-term capital losses of 102. \$1,000 and long-term capital losses of \$12,000. Greg had no other capital transactions in prior years. What is Greg’s capital loss carryover to 2011? \$5,000 a. \$7,000 b. \$8,000 c. \$10,000 d. \$13,000 e. On November 14, 2008, Patricia Primrose purchased a rare gem stone as an investment. On March 5, 2010, 103. she exchanged it for another rare gem in a nontaxable exchange. On June 9, 2010, she sold the latter stone for cash and realized a gain. This gain will be treated as a short-term capital gain. a. a long-term capital gain. b.

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