Todd Johnson had the following items of income and losses during the tax year: Wages $40,000
Non-business bad debt $1,000
Gann on commodities held 16 months $2,000
Loss on stock held 2 years $(800)
Flood damage on personal residence owned 5 years $4500
Gain on stock held 13 months $5,000

The Flood damage occurred due to a federally declared disaster. What is Todd's taxable capital gain for the tax year?

a. $500
b. $700
c. $5,200
d. $6,200

Todd Johnson

Todd's taxable capital gain for the tax year is:

d. $6,200

Explanation:

a) Data and Calculations:

Gain on commodities held 16 months $2,000

Loss on stock held 2 years                    $(800)

Gain on stock held 13 months             $5,000

Net Capital Gains (Long-term)             $6,200

b) A capital gain or loss exists on property such as a home, car, and investment property, like stocks and bonds when is sold. Short-term capital gain or loss is differentiated from long-term capital gain or loss.  Usually, long-term capital gain or loss is calculated for assets held more than a year before disposal, while short-term gain or loss is calculated separately for assets sold within a year of being held.

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.