Please help me figure out AGI*

Problem 14-60 (b) (LO. 5)

Woody and Ruby are married and filing a joint return. They have combined wages of $135,000 in 2020. The couple's 2020 stock transactions are detailed in the following table. In addition, they have $6,200 of qualifying dividends.

Item		Date Acquired		Date Sold		Cost		Sales Price
Apple stock		02/10/19		01/14/20		$9,000		$5,000
Peach stock		04/23/18		01/05/20		$7,500		$3,000
Cherry stock		10/01/15		03/31/20		$13,000		$19,000
Banana stock		03/31/19		02/18/20		$22,000		$17,000
Orange stock		10/15/19		10/07/20		$9,000		$17,500
Plum stock		09/22/18		05/02/20		$2,000		$6,500

a. Determine the nature and amount of the gain or loss for each of the stock transactions. Item Type of Gain or Loss Amount Apple stock Short-term capital loss $ -4,000 Peach stock Long-term capital loss $ -4,500 Cherry stock Long-term capital gain $ 6,000 v Banana stock Short-term capital loss $ -5,000 Orange stock Short-term capital gain $ 8,500 v Plum stock Long-term capital gain $ 4,500 and a net b. Woody and Ruby have a net short-term capital loss of $ 500 long-term capital gain of $ 6,000 V. Consequently, there is a net long-term capital gain of $ 5,500 V. Woody and Ruby's AGI is $ 140,500 X. Feedback Check My Work The tax law requires capital gains and capital losses to be separated from other types of gains and losses. There are two reasons for this treatment. First, long-term capital gains may be taxed at a lower rate than ordinary gains. The second reason the Code requires separate reporting of gains and losses and a determination of their tax character is that a net capital loss is only deductible up to $3,000 per year