During the Current Year, Cathy Realizes
Determine the Tax Consequences $\$ 3,000$

Multiple Choice

During the current year, Cathy realizes
Determine the tax consequences of these events.
- a $\$ 3,000$ loss on the sale of her personal use automobile held 4 years.
- a $\$ 4,000$ loss on the sale of Itoham Corporation stock held 3 years for investment.
- a $\$ 2,000$ gain on the sale of Sterling, Inc., bonds held 7 months for an investment.

A) Cathy deducts a $5,000 net capital loss.
B) Cathy deducts a $3,000 net capital loss.
C) Cathy deducts a $2,000 net capital loss.
D) Cathy deducts a $1,000 net capital loss.
E) Cathy deducts a $7,000 net capital loss.