For the current year, Susan had salary income of $20,000.In addition, she reported the following capital transactions during the year: $\begin{array}{llcc}
\text { Long-term capital gain} &\$7,000 \
\text { Short-term capital gain} &3,000\
\text { Long-term capital loss} &(2,000)\
\text {Short-term capital loss } &(5,000)\
\end{array}$
There were no other items includable in her gross income.What is the amount of her adjusted gross income for the current year?
A)$19,000
B)$23,000
C)$24,000
D)$25,000
E)None of the above

Question

For the current year, Susan had salary income of $20,000.In addition, she reported the following capital transactions during the year: $\begin{array}{llcc}
  \text {  Long-term capital gain} &\$7,000  \
 \text {  Short-term capital gain} &3,000\
 \text {  Long-term capital loss} &(2,000)\
 \text {Short-term capital loss  } &(5,000)\
\end{array}$
 There were no other items includable in her gross income.What is the amount of her adjusted gross income for the current year?
A)$19,000
B)$23,000
C)$24,000
D)$25,000
E)None of the above

Quizplus · Accepted Answer

Susan's salary is $20,000. Her net capital gain/loss is calculated as follows: Long-term gain ($7,000) - Long-term loss ($2,000) = $5,000; Short-term gain ($3,000) - Short-term loss ($5,000) = -$2,000. The net capital gain is $5,000 - $2,000 = $3,000. Therefore, her adjusted gross income is $20,000 + $3,000 = $23,000.

For the Current Year, Susan Had Salary Income of $20,000