Question
Yousef sold the following assets used in his business during 2024: Asset
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.
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b. | None of the choices presented are correct.
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c. | $5,000 LTCG and $1,600 ordinary loss.
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d. | $1,200 LTCG and $600 ordinary gain.
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e. | $2,800 LTCG and $600 ordinary gain.
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