Yousef sold the following assets used in his business during 2024:

Asset                                                    Holding Period                      Gain/(Loss)

Office Equipment                                     6 years                                   $2,200

Automobile                                               8 months                               ($1,600)

XYZ Stock (Capital Asset)                        2 years                                   $2,800

 

Office equipment, purchased for $16,000, had a zero basis.  The automobile was purchased for $4,000 and sold for $2,400.  The XYZ stock was purchased for $3,600 and sold for $6,400.  In 2024, the year of the sale, Yousef should report what amount of net capital gain and net ordinary income?

 

	a.	$3,400 LTCG.
	b.	None of the choices presented are correct.
	c.	$5,000 LTCG and $1,600 ordinary loss.
	d.	$1,200 LTCG and $600 ordinary gain.
	e.	$2,800 LTCG and $600 ordinary gain.