Benjamin has the following capital gains and losses for the current year:
$\begin{array}{llcc}
\text {Long-term capital loss}&\$(13,000) \
\text {Long-term capital gain}& 6,000\
\text {Short-term capital loss}& (10,000) \
\text {Short-term capital gain}&12,000 \
\end{array}$

What is Benjamin's net capital gain or loss for the year?
A)Net long-term capital loss of $7,000.
B)Net short-term capital gain of $2,000.
C)Net long-term capital loss of $5,000.
D)Net short-term capital gain of $1,000.
E)Net long-term capital loss of $3,000.

Question

Benjamin has the following capital gains and losses for the current year:
$\begin{array}{llcc}
 \text {Long-term capital loss}&\$(13,000) \
 \text {Long-term capital gain}&  6,000\
 \text {Short-term capital loss}& (10,000) \
 \text {Short-term capital gain}&12,000  \
\end{array}$

What is Benjamin's net capital gain or loss for the year?
A)Net long-term capital loss of $7,000.
B)Net short-term capital gain of $2,000.
C)Net long-term capital loss of $5,000.
D)Net short-term capital gain of $1,000.
E)Net long-term capital loss of $3,000.

Quizplus · Accepted Answer

To calculate the net capital gain or loss for the year, we need to first add up all the long-term gains and losses, and then add up all the short-term gains and losses.

Long-term: 
Loss of $13,000 
Gain of $6,000

Net long-term capital loss = loss - gain = -$7,000

Short-term: 
Loss of $10,000 
Gain of $12,000

Net short-term capital gain = gain - loss = $2,000

Now, we add the net long-term and short-term gains/losses:

Net capital gain or loss = -$7,000 + $2,000 = -$5,000

Therefore, Benjamin has a net long-term capital loss of $7,000.

Benjamin Has the Following Capital Gains and Losses for the Current