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During 2015, Anne sold several shares of stock held for investment. The followin

ID: 2459669 • Letter: D

Question

During 2015, Anne sold several shares of stock held for investment. The following is a summary of her capital transactions for the year. What is the amount of Anne’s net capital gain or loss for the year and what is the character of the gain or loss?

Acquired

Sold

Selling Price

Cost

2/15/15

7/15/15

$2,100

$1,400

6/25/13

8/2/15

3,500

2,300

9/25/15

12/15/15

800

1,000

12/28/12

6/15/15

600

900




(Points : 5)        $0
       Long term capital loss $1,100
       Long term capital loss $1,400
       Long term capital loss $3,000
       Short term capital loss $500 and long term capital loss $900
       Short term capital gain $500 and long term capital gain $900
       Long term capital gain $1,100
       Long term capital gain $1,400

Acquired

Sold

Selling Price

Cost

2/15/15

7/15/15

$2,100

$1,400

6/25/13

8/2/15

3,500

2,300

9/25/15

12/15/15

800

1,000

12/28/12

6/15/15

600

900

Explanation / Answer

Short term capital gain $500 and long term capital gain $900

Stocks bought and sold within one year will be short term gain

2/15 /15      - 7/15/15             gain= 2,100 - $1,400 = $700

9/25/15     - 12/15/25             loss =800 - 1000         = -200

net gain = 500 short term

long term

6/25/13 -8/25/15   3,500 - 2,300   = $1,200

12/18/12 - 6/15/15 = 600 -900 = $-300

Net long term capital gain 900

Short term capital gain $500 and long term capital gain $900

Stocks bought and sold within one year will be short term gain

2/15 /15      - 7/15/15             gain= 2,100 - $1,400 = $700

9/25/15     - 12/15/25             loss =800 - 1000         = -200

net gain = 500 short term

long term

6/25/13 -8/25/15   3,500 - 2,300   = $1,200

12/18/12 - 6/15/15 = 600 -900 = $-300

Net long term capital gain 900

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