Question
Belinda's capital gains and losses for two consecutive years are provided here. What is the effect of the gains and losses on Belinda's taxable income
Belinda's capital gains and losses for two consecutive years are provided here. What is the effect of the gains and losses on Belinda's taxable income for each year?
Please include the explanation, thank you!
Belindas Capital Gains and Losses for Two Consecutive Years | ||
- | First Year | Second Year |
Short-term capital gain | $0 | $4,000 |
Long-term capital gain | 13,000 | 6,000 |
Short-term capital loss | (3,000) | (15,000) |
Long-term capital loss | (12,000) | 0 |
Group of answer choices
First year: $10,000; Second year $ 7,000;
First year: $(2,000); Second year $ (3,000);
First year: $(3,000); Second year $ (3,000);
First year: $(2,000); Second year $ (5,000);
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