Problem 14-57 (LO. 5) Elaine Case (single with no dependents) has the following transactions in 2020: AGI (exclusive of capital gains and $540,000 losses) Long-term capital gain 22,000 Long-term capital loss (8,000) Short-term capital gain 19,000 Short-term capital loss (23,000) a. What is Elaine's net capital gain or loss? Elaine has a net long-term capital gain of $ and a net short-term capital of $ . As a result, she has an overall net capital of $ b. Complete the letter to Elaine describing how the net capital gain or loss will be treated on her tax return. Note that Elaine's income from other sources puts her in the 37% tax bracket. If required, round your answer to one decimal place.
Problem 14-57 (LO. 5) Elaine Case (single with no dependents) has the following transactions in 2020: AGI (exclusive of capital gains and $540,000 losses) Long-term capital gain 22,000 Long-term capital loss (8,000) Short-term capital gain 19,000 Short-term capital loss (23,000) a. What is Elaine's net capital gain or loss? Elaine has a net long-term capital gain of $ and a net short-term capital of $ . As a result, she has an overall net capital of $ b. Complete the letter to Elaine describing how the net capital gain or loss will be treated on her tax return. Note that Elaine's income from other sources puts her in the 37% tax bracket. If required, round your answer to one decimal place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Maloney, Young, Nellen, & Persellin, CPAS
5191 Natorp Boulevard
Mason, OH 45040
March 17, 2021
Ms. Elaine Case
300 Ireland Avenue
Shepherdstown, WV 25443
Dear Ms. Case:
The purpose of this letter is to discuss the result of your stock transactions for 2020.
You had $
net of
capital gains and $
of
capital losses. Subtracting the $
of losses from the $
of
results in a $
net
capital gain.
The $
net
capital gain and the details of your stock
transactions
v be reported on the Schedule D attached to your Form
1040. The $
net capital
v for the alternative
tax on capital gains and will be taxed at a
% rate, rather than at your
marginal tax rate of 37%.
Thank you for the opportunity to be of service. Please call me if you have additional
questions.
Sincerely,
Michelle Brown, CPA
Partner](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd286df05-0dfe-4ee1-a07e-fa0164a24092%2Fa56bee9f-9270-491e-a4ba-f45635ae914b%2Fwjtbmzi_processed.png&w=3840&q=75)
Transcribed Image Text:Maloney, Young, Nellen, & Persellin, CPAS
5191 Natorp Boulevard
Mason, OH 45040
March 17, 2021
Ms. Elaine Case
300 Ireland Avenue
Shepherdstown, WV 25443
Dear Ms. Case:
The purpose of this letter is to discuss the result of your stock transactions for 2020.
You had $
net of
capital gains and $
of
capital losses. Subtracting the $
of losses from the $
of
results in a $
net
capital gain.
The $
net
capital gain and the details of your stock
transactions
v be reported on the Schedule D attached to your Form
1040. The $
net capital
v for the alternative
tax on capital gains and will be taxed at a
% rate, rather than at your
marginal tax rate of 37%.
Thank you for the opportunity to be of service. Please call me if you have additional
questions.
Sincerely,
Michelle Brown, CPA
Partner
![Problem 14-57 (LO. 5)
Elaine Case (single with no dependents) has the following transactions in 2020:
AGI (exclusive of capital gains and
$540,000
losses)
Long-term capital gain
22,000
Long-term capital loss
(8,000)
Short-term capital gain
19,000
Short-term capital loss
(23,000)
a. What is Elaine's net capital gain or loss?
Elaine has a net long-term capital gain
of $
and a net short-term capital
of $
. As a result, she has an overall net capital
of $
b. Complete the letter to Elaine describing how the net capital gain or loss will be treated on
her tax return. Note that Elaine's income from other sources puts her in the 37% tax
bracket. If required, round your answer to one decimal place.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd286df05-0dfe-4ee1-a07e-fa0164a24092%2Fa56bee9f-9270-491e-a4ba-f45635ae914b%2Fwbb0kz_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 14-57 (LO. 5)
Elaine Case (single with no dependents) has the following transactions in 2020:
AGI (exclusive of capital gains and
$540,000
losses)
Long-term capital gain
22,000
Long-term capital loss
(8,000)
Short-term capital gain
19,000
Short-term capital loss
(23,000)
a. What is Elaine's net capital gain or loss?
Elaine has a net long-term capital gain
of $
and a net short-term capital
of $
. As a result, she has an overall net capital
of $
b. Complete the letter to Elaine describing how the net capital gain or loss will be treated on
her tax return. Note that Elaine's income from other sources puts her in the 37% tax
bracket. If required, round your answer to one decimal place.
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