William has the following capital gains and losses for the current year:
?
$\begin{array}{lr}
\text { Short-term capital gain } & \$ 10,000 \
\text { Short-term capital loss } & (3,000) \
\text { Long-term capital gain } & 5,000
\end{array}$
What is William's net capital gain or loss position for the year?
A)Short-term capital gain $7,000; Long-term capital gain $5,000.
B)Short-term capital gain $10,000; Long-term capital gain $2,000.
C)Short-term capital gain $7,000; Long-term capital gain $2,000.
D)Short-term capital gain $10,000; Long-term capital gain $5,000

Question

Quizplus · Accepted Answer

Short-term gains and losses are netted against each other, as are long-term gains and losses. William's short-term capital gain of $10,000 minus his short-term capital loss of $3,000 results in a net short-term capital gain of $7,000. There are no long-term losses to offset the long-term gain, so the long-term capital gain remains $5,000.

William Has the Following Capital Gains and Losses for the Current