2 questions in Income Tax. 39. In 2014, Rick had a $12,000 gain on the sale of stock purchased three years ago, a $7,000 loss on the sale of a personal use automobile, and a $3,000 loss from the sale of land used in his business (owned for six years). These are Rick's only property transactions during the year. Once the netting process is complete, on his tax return Rick's gains and losses will be treated as: ---- a $3,000 ordinary loss and a $9,000 net long-term capital loss. a $2,000 net capital gain. a $3,000 ordinary loss and a $12,000 net capital gain. a $9,000 net capital gain. none of the above. -------------------------------------------------------------------------------------- 28. Please provide an explanation A warehouse was damaged in a storm. The warehouse was worth $225,000 before the casualty and $65,000 after the casualty. The taxpayer's adjusted basis in the warehouse was $77,000. The insurance company reimbursed the taxpayer $150,000 for its loss. To avoid paying tax on the realized gain, how much must the taxpayer reinvest and in what type of property? ---- 1) $77,000 in another warehouse 2) $150,000 in any other business or investment realty 3) $77,000 in any other business or investment realty 4) $160,00 in another warehouse 5) None of the above