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Questions and Answers
- Your client Selma Watt sold her investment in Ohm Electric Company on June 10 for $22 a share. She purchased the stock on July 10 of the previous year for $18 a share.
She has realized
A. a long-term capital loss
B. a long-term capital gain
C. a short-term capital loss
D. a short-term capital gain
- Your client Selma Watt sold her investment in Ohm Electric Company on June 10 for $22 a share. She purchased the stock on July 10 of the previous year for $18 a share. She has realized A. a long-term capital loss B. a long-term capital gain C. a short-term capital loss D. a short-term capital gain
- a long-term capital loss
- a long-term capital gain
- a short-term capital loss
- a short-term capital gain (correct)
- All of the following are taxed as ordinary income except
A. a bonus from an employer
B. interest payments from a bond portfolio
C. profit made from the sale of a long-held security
D. consultation fees received from a client
- All of the following are taxed as ordinary income except A. a bonus from an employer B. interest payments from a bond portfolio C. profit made from the sale of a long-held security D. consultation fees received from a client
- a bonus from an employer
- interest payments from a bond portfolio
- profit made from the sale of a long-held security (correct)
- consultation fees received from a client
- Your customer had $120,000 in ordinary income in the prior tax year. This customer also sold two stock positions-the first for a gain of $47,000 and the second for a loss of $50,000. For that tax year, the customer will pay tax on
A. $117,000 in ordinary income and zero net gains
B. $117,000 in ordinary income and $3,000 in gains
C. $120,000 in ordinary income and zero net gains
D. $120,000 in ordinary income and $3,000 in net gains
- Your customer had $120,000 in ordinary income in the prior tax year. This customer also sold two stock positions-the first for a gain of $47,000 and the second for a loss of $50,000. For that tax year, the customer will pay tax on A. $117,000 in ordinary income and zero net gains B. $117,000 in ordinary income and $3,000 in gains C. $120,000 in ordinary income and zero net gains D. $120,000 in ordinary income and $3,000 in net gains
- $117,000 in ordinary income and zero net gains (correct)
- $117,000 in ordinary income and $3,000 in gains
- $120,000 in ordinary income and zero net gains
- $120,000 in ordinary income and $3,000 in net gains
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