In 2011,Creeper Corporation had a $4,000 net long-term capital loss which it could not carry back.For 2012,it had the following capital transactions: As a result of these transactions,for 2012 Creeper has a:

Question

In 2011,Creeper Corporation had a $4,000 net long-term capital loss which it could not carry back.For 2012,it had the following capital transactions:  As a result of these transactions,for 2012 Creeper has a:

Quizplus · Accepted Answer

The net short-term capital gain for 2012 is $2,000 ($5,000 short-term gain - $3,000 short-term loss). The net long-term capital gain for 2012 is $1,000 ($6,000 long-term gain - $5,000 long-term loss). Since the net long-term capital gain is positive, there is no carryover to 2013 of the long-term capital loss from 2011. Therefore, the best choice is C, net long-term capital gain of $1,000.

In 2011,Creeper Corporation Had a $4,000 Net Long-Term Capital Loss