Sheldon had salary income of $40,000.In addition, he had the following gains and losses on his property transactions: Long-term capital gain = $14,000; long-term capital loss = $6,000; short-term capital gain = $4,000; short-term capital loss = $8,000.If Sheldon has no other income items, what is his total income before any deductions for the year?
A)$44,000
B)$47,000
C)$48,000
D)$52,000

Question

Quizplus · Accepted Answer

Sheldon's total income before any deductions for the year is $44,000. This is calculated by adding his salary income of $40,000 to his net capital gain of $4,000. His net capital gain is calculated by subtracting his short-term capital loss of $8,000 from his long-term capital gain of $14,000.

Sheldon Had Salary Income of $40,000