K had short-term capital losses of $2,000 and long-term capital gains of $5,000 during the current year.By what amount is K's A.G.I.increased as a result of these transactions?

Question

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K's Adjusted Gross Income (AGI) is increased by $3,000, which is the net result of subtracting the $2,000 short-term capital losses from the $5,000 long-term capital gains.

K Had Short-Term Capital Losses of $2,000 and Long-Term Capital