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Please provide a detailed explaination for both questions. I would like to understand why the answer is correct and the others are wrong. Thank you
Please provide a detailed explaination for both questions. I would like to understand why the answer is correct and the others are wrong. Thank you so much. Have a blessed day.
Question 3: Beth and Gary sold securities during the current year. The sales resulted in a capital loss of $7,000. They had no other capital transactions. Their taxable income was $26,000. How much can they deduct on their joint return? A. $7,000 B. $3,000 C. $4,000 D. $0 Question 4: On February 16, Year 1, Henry Hanson purchased 100 shares of Braddor Corporation stock at $40 per share. On July 28, Year 5, he sold the 100 shares at $25 per share. On August 10 , Year 5 , his wife purchased 50 shares of Braddor Corporation at $30 per share. These are the only capital asset transactions by the Hansons during Year 5. In computing their taxable income for Year 5, the Hansons may deduct, from their ordinary income of $40,000, a capital loss in the amount of A. $375 B. $750 C. $1,000 D. $1,500Step by Step Solution
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