For the year ended December 31, 2014, Sol Corp. had an operating income of $20,000. In addition, Sol had capital gains and losses resulting in a net short-term capital gain of $2,000 and a net long-term capital loss of $7,000. How much of the excess of net long-term capital loss over net short-term capital gain could Sol offset against ordinary income for 2014?
a. $5,000
b. $3,000
c. $1,500
d. $0
Answer: D
Tax
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