In 2019, Creeper Corporation had a $4,000 net long-term capital loss that it could not carry back.For 2020, it had the following capital transactions. $\begin{array} { r }
\text {Long-term capital gain}&\$ 2,000 \
\text {Short-term capital gain}&3,000
\end{array}$
As a result of these transactions, for 2020 Creeper has a:

Question

In 2019, Creeper Corporation had a $4,000 net long-term capital loss that it could not carry back.For 2020, it had the following capital transactions. $\begin{array} { r } 
\text {Long-term capital gain}&\$ 2,000 \
\text {Short-term capital gain}&3,000
\end{array}$
 As a result of these transactions, for 2020 Creeper has a:

Quizplus · Accepted Answer

Creeper Corporation had a net long-term capital loss of $4,000 in 2019 that it could not carry back. For 2020, it had the following capital transactions: 
- Sold stock A for a $1,000 gain (short-term)
- Sold stock B for a $2,000 loss (long-term)
- Sold land for a $3,000 gain (long-term)

The net short-term capital gain is $1,000 ($1,000 gain from stock A minus $0 loss from stock B). The net long-term capital gain is $1,000 ($3,000 gain from land minus $2,000 loss from stock B). Therefore, the answer is C, a net long-term capital gain of $1,000. There is no carryover loss because the total gains exceeded the total losses.

In 2019, Creeper Corporation Had a $4,000 Net Long-Term Capital Long-term capital gain$2,000Short-term capital gain3,000\begin{array} { r } \text {Long-term capital gain}&\$ 2,000 \\\text {Short-term capital gain}&3,000\end{array}Long-term capital gainShort-term capital gain​$2,0003,000​

In 2019, Creeper Corporation Had a $4,000 Net Long-Term Capital $\begin{array} { r } \text {Long-term capital gain}&\$ 2,000 \\\text {Short-term capital gain}&3,000\end{array}$