QUESTION 18 The following assets in Donald's business were sold in 2020: Asset Holding Period Gain (Loss) Office equipment 6 years $10,000 Automobile 8 months ($1,000) ABC stock (capital asset) 2 years $1,500 Office equipment, purchased for $8,000, had a zero adjusted basis. The automobile was purchased for $2,000 and sold for $1,000. The ABC stock was purchased for $1,800 and sold for $3,300. In 2020 (the year of sale), Donald should report what amount of net capital gain and net ordinary income? a. $10,500 LTCG b. $3,500 LTCG and S7,000 ordinary gain. c. $11,500 LTCG and $1,000 ordinary loss. d. $2,500 LTCG and $8.000 ordinary gain. e. None of the above QUESTION 18 The following assets in Donald's business were sold in 2020: Asset Holding Period Gain (Loss) Office equipment 6 years $10,000 Automobile 8 months ($1,000) ABC stock (capital asset) 2 years $1,500 Office equipment, purchased for $8,000, had a zero adjusted basis. The automobile was purchased for $2,000 and sold for $1,000. The ABC stock was purchased for $1,800 and sold for $3,300. In 2020 (the year of sale), Donald should report what amount of net capital gain and net ordinary income? a. $10,500 LTCG b. $3,500 LTCG and S7,000 ordinary gain. c. $11,500 LTCG and $1,000 ordinary loss. d. $2,500 LTCG and $8.000 ordinary gain. e. None of the above