Alan has the following capital gains and losses during the current year:
Alan's capital gain/loss position for the year is:
$\begin{array}{lc}
\text { Short-term capital loss } & \$(4,000) \
\text { Collectibles gain } & 3,000 \
\text { Long-term capital gain } & 8,000
\end{array}$

A)Long-term gain $8,000; short-term capital loss $1,000.
B)Net long-term capital gain $7,000.
C)Short-term capital loss $4,000; long-term capital gain $11,000
D)Collectibles gain $3,000; long-term capital gain $4,000

Question

Alan has the following capital gains and losses during the current year:
Alan's capital gain/loss position for the year is:
$\begin{array}{lc}
\text { Short-term capital loss } & \$(4,000) \
\text { Collectibles gain } & 3,000 \
\text { Long-term capital gain } & 8,000
\end{array}$

A)Long-term gain $8,000; short-term capital loss $1,000.
B)Net long-term capital gain $7,000.
C)Short-term capital loss $4,000; long-term capital gain $11,000
D)Collectibles gain $3,000; long-term capital gain $4,000

Quizplus · Accepted Answer

Alan's net capital gain/loss is calculated by offsetting the short-term capital loss of $4,000 against the long-term capital gain of $8,000, resulting in a net long-term capital gain of $4,000. The collectibles gain of $3,000 is added to this, resulting in a total net long-term capital gain of $7,000.

Alan Has the Following Capital Gains and Losses During the Current