The following assets in Jack’s business were sold in 2017: Asset Holding Period Gain/(Loss) Office Equipment 6 years $1,100 Automobile 8 months ($ 800) ABC Stock (capital asset) 2 years $1,400 The office equipment had a zero adjusted basis and was purchased for $8,000. The automobile was purchased for $2,000 and sold for $1,200. The ABC stock was purchased for $1,800 and sold for $3,200. In 2017 (the year of sale), Jack should report what amount of net capital gain and net ordinary income? a. $1,700 LTCG. b. $600 LTCG and $300 ordinary gain. c. $1,400 LTCG and $300 ordinary gain. d. $2,500 LTCG and $800 ordinary loss. e. None of the above.



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