Willie sells the following assets and realizes the following gains (losses)during the current year:
$\begin{array}{lr}
\text {Personal auto } &\$(5,000) \
\text {Municipal bonds } &(7,000) \
\text { Stamp collection } &4,000 \
\text { Furniture } &(6,000) \
\text { 1 \% interest in oil well } &(8,000)
\end{array}$
As a result of these sales,Willie's adjusted gross income will:

Question

Willie sells the following assets and realizes the following gains (losses)during the current year:
$\begin{array}{lr}
 \text {Personal auto  } &\$(5,000) \
 \text {Municipal bonds  } &(7,000) \
 \text { Stamp collection } &4,000 \
 \text { Furniture } &(6,000) \
 \text { 1 \%  interest in oil well } &(8,000)
\end{array}$
As a result of these sales,Willie's adjusted gross income will:

Quizplus · Accepted Answer

The sale of personal auto, municipal bonds, and furniture results in a loss, which reduces AGI. The sale of the stamp collection and interest in the oil well results in a gain, which increases AGI. The net effect is a decrease in AGI of $3,000 ($8,000 + $4,000 - $5,000 - $7,000 - $6,000).

Willie Sells the Following Assets and Realizes the Following Gains