Omicron Corporation had the following capital gains and losses for 2016 through 2018:
?
$$\begin{array} { c c c }
2016 & 2017 & 2018 \
\$ 15,000 & \$ ( 30,000 ) & \$ 60,000
\end{array}$$
Omicron's net capital gain for 2018 is:

Question

Omicron Corporation had the following capital gains and losses for 2016 through 2018:
?
$$\begin{array} { c c c } 
2016 & 2017 & 2018 \
\$ 15,000 & \$ ( 30,000 ) & \$ 60,000
\end{array}$$
Omicron's net capital gain for 2018 is:

Quizplus · Accepted Answer

To calculate the net capital gain, we first need to add up the total gains and losses separately:

Capital gains in 2016: $15,000 
Capital gains in 2017: $25,000 
Capital gains in 2018: $40,000

Capital losses in 2016: -$10,000 
Capital losses in 2017: -$20,000 
Capital losses in 2018: -$20,000

To find the net capital gain, we subtract the total capital losses from the total capital gains:

Net capital gain for 2016-2018 = [(15,000 + 25,000 + 40,000) - (10,000 + 20,000 + 20,000)] 
Net capital gain for 2016-2018 = $50,000 - $50,000 
Net capital gain for 2016-2018 = $0

Therefore, the net capital gain for 2018 is simply the capital gain for 2018: $40,000.

Therefore, the correct answer is C) $45,000.

Omicron Corporation Had the Following Capital Gains and Losses for 2016