How is the gain or loss of a capital asset calculated? adding the fair market value...
How is the gain or loss of a capital asset calculated?
adding the fair market value to the basis of the capital asset when sold
subtracting the fair market value from the basis of the capital asset when sold
adding the basis of the capital asset when sold to the fair market value
subtracting the basis of the capital asset when sold from the fair market value
Homework Answers
Gain or loss of a capital asset is calculated by subtracting the basis of the capital asset (cost of acquisition) from the fair market value.
In case the:
a) fair market value > basis of the capital asset = capital gain,
b) fair market value < basis of the capital asset = capital loss.
Add Answer to:
How is the gain or loss of a capital asset calculated?
adding the fair market value...
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