Morgan has the following capital gains and losses for the current tax year
$\begin{array}{lr}
\text { Short-term capital gains } & \$ 12,000 \
\text { Long-term capital gains } & 3,000 \
\text { Short-term capital losses } & (7,000) \
\text { Long-term capital losses } & (6,000)
\end{array}$
What is Morgan's net capital gain or loss position for the year?

Question

Quizplus · Accepted Answer

Morgan's net short-term capital gain is calculated as follows: 
short-term capital gains ($12,000) - short-term capital losses ($7,000) = $5,000 net short-term capital gain. 
Morgan's net long-term capital loss is calculated as follows: 
long-term capital gains ($3,000) - long-term capital losses ($6,000) = $3,000 net long-term capital loss. 
Since the net short-term capital gain is greater than the net long-term capital loss, the overall net capital gain for the year is $2,000 net short-term capital gain. Therefore, the correct answer is C.

Morgan Has the Following Capital Gains and Losses for the Current