The following assets in Jack's business were sold in 2018: Office equipment, purchased for $8,000, had a zero adjusted basis.The automobile was purchased for $2,000 and sold for $1,200.The ABC stock was purchased for $1,800 and sold for $3,200.In 2018 (the year of sale), Jack should report what amount of net capital gain and net ordinary income?
A)$1,700 LTCG.
B)$600 LTCG and $300 ordinary gain.
C)$1,400 LTCG and $300 ordinary gain.
D)$2,500 LTCG and $800 ordinary loss.
E)None of these.

Question

The following assets in Jack's business were sold in 2018:  Office equipment, purchased for $8,000, had a zero adjusted basis.The automobile was purchased for $2,000 and sold for $1,200.The ABC stock was purchased for $1,800 and sold for $3,200.In 2018 (the year of sale), Jack should report what amount of net capital gain and net ordinary income?
A)$1,700 LTCG. 
B)$600 LTCG and $300 ordinary gain. 
C)$1,400 LTCG and $300 ordinary gain. 
D)$2,500 LTCG and $800 ordinary loss. 
E)None of these.

Quizplus · Accepted Answer

The Answer of The following assets in Jack's business were sold in 2018:  Office equipment, purchased for $8,000, had a zero adjusted basis.The automobile was purchased for $2,000 and sold for $1,200.The ABC stock was purchased for $1,800 and sold for $3,200.In 2018 (the year of sale), Jack should report what amount of net capital gain and net ordinary income?
A)$1,700 LTCG. 
B)$600 LTCG and $300 ordinary gain. 
C)$1,400 LTCG and $300 ordinary gain. 
D)$2,500 LTCG and $800 ordinary loss. 
E)None of these.

The Following Assets in Jack's Business Were Sold in 2018