Question

Grayson's net long-term capital gain is 8,970, which is the net long-term gain less the long-term loss for the year. This is the net of the long-term capital gain of 11,720 (i.e. 4,550 from Stock C (15,300 - 10,750) and 7,170 from Stock D (12,400 - 5,230)) less the long-term capital loss of 2,750 from Stock A (4,500 - 7,250). What is Grayson's net long-term capital gain?

1) 8,970
2) 11,720
3) 4,550
4) 7,170

Answer 1

Grayson's net long-term capital gain is $8,970, calculated by subtracting the long-term capital loss from the net long-term capital gain.

Step-by-step explanation:

Grayson's net long-term capital gain is $8,970. This is calculated by subtracting the long-term capital loss of $2,750 from the net of the long-term capital gain of $11,720. The long-term capital gain includes $4,550 from Stock C and $7,170 from Stock D.