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

To calculate Creeper Corporation's net capital gain for 2012, we need to first calculate the total gains and losses separately for short-term and long-term transactions.

Short-term transactions: 
- Sale of stock A: $2,000 gain 
- Sale of stock B: $1,000 loss 
- Sale of stock C: $1,000 loss
Net short-term capital gain: $2,000 - $1,000 - $1,000 = $0

Long-term transactions: 
- Sale of stock D: $5,000 gain 
- Sale of stock E: $3,000 loss 
Net long-term capital gain: $5,000 - $3,000 = $2,000

Since Creeper Corporation had a net long-term capital loss of $4,000 in 2011 and this loss cannot be carried back, it will carry over to future years. Therefore, the answer is C) Net long-term capital gain of $1,000.

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