Question

Daria sold 25 shares of Schulz Corporation stock she owned to her father on September 2nd for $1,700. She purchased the stock in 2015 for $3,200. No stockbroker commissions were paid on either the sale or purchase of the stock. In addition to this sale, she reported a net short-term capital gain of $4,500. She also has a ($5,000) long-term capital loss carryforward available from last year. The amount of income/loss included in her adjusted gross income from these transactions is:

a. $0.

b. ($500).

c. ($2,000).

d. $1,500.

e. none of the above.

6. Which of the following assets is NOT a capital asset?

a. An antique tractor the taxpayer uses 100% for personal purposes

b. A municipal bond held by the taxpayer for investment purposes

c. A residence the taxpayer uses only for personal purposes

d. An office building the taxpayer uses 100% for business purposes in his sole proprietorship

e. All the above are capital assets.

7. Devon is a 20% partner in Monnett Partnership. Monnett reported the following items in total for the year: Ordinary income $100,000 Long-term capital loss (25,000) Short-term capital gain 2,500 Devon also reported a net long-term capital gain of $1,000 from the sale of his stock this year. Devon’s adjusted gross income is:

a. $21,500.

b. $21,000.

c. $17,000.

d. $16,500.

e. none of the above.