In 2013,Creeper Corporation had a $4,000 net long-term capital loss which it could not carry back.For 2014,it had the following capital transactions: Long-term capital gain $2,000
Short-term capital gain 3,000
As a result of these transactions,for 2014 Creeper has a:

Question

Quizplus · Accepted Answer

The 2013 net long-term capital loss of $4,000 is carried over to 2014 as a short-term capital loss.Offsetting this loss against the $3,000 short-term capital gain results in an extra $1,000 of the carryover that is left.This is applied to the $2,000 long-term capital gain,leaving a balance of $1,000 (choice c. ).

In 2013,Creeper Corporation Had a $4,000 Net Long-Term Capital Loss