1. In X8, Erin had the following capital gains (losses) from the sale of her investments: $2,000 LTCG, $25,000 STCG, ($9,000) LTCL, and ($15,000) STCL. What is the amount and nature of Erin's capital gains and losses?
A. $3,000 net short-term capital gain.
B. $3,000 net long-term capital loss.
C. $4,000 net short-term capital gain.
D. $4,000 net long-term capital loss.
E. None of the choices are correct.
2. Sheryl’s AGI is $250,000. Her current tax liability is $52,068. Last year, her tax liability was $48,722. She will not owe underpayment penalties if her total estimated tax payments are at least which of the following (rounded) amounts (assume she makes the required payments each quarter)?
A. $46,861
B. $53,594
C. $48,722
D. $51,547
3. In the current year, Norris, an individual, has $58,000 of ordinary income, a Net Short Term Capital Loss (NSTCL) of $9,200 and a Net Long Term Capital Gain (NLTCG) of $3,600. From his capital gains and losses, Norris reports:
A. an offset against ordinary income of $3,000 and a NSTCL carryforward of $2,600.
B. an offset against ordinary income of $3,000 and a NSTCL carryforward of $6,200.
C. an offset against ordinary income of $3,000 and a NSTCL carryforward of $5,600.
D. an offset against ordinary income of $3,600 and a NSTCL carryforward of $5,600.
E. an offset against ordinary income of $9,200.