Boris, a single individual, has two sales of stock during the current year. The first sale produces a short-term loss of $27,000 and the second sale results in a long-term gain of $57,000. Boris's taxable income without considering the gain is $125,000. Boris's stock transactions will increase his taxable income by:
A)$-0-
B)$30,000
C)$34,000
D)$54,000

Question

Quizplus · Accepted Answer

The net effect of Boris's stock transactions is a $30,000 long-term gain ($57,000 long-term gain minus $27,000 short-term loss), which will increase his taxable income by $30,000.

Boris, a Single Individual, Has Two Sales of Stock During