Jerry and julie are brother and sister. jerry sold stock to julie for $5,000, its fair market value. the stock cost jerry $10,000 5 years ago. also, jerry sold carol (an unrelated party) stock for $2,000 that cost $10,000 3 years ago. what is jerry's recognized loss before the $3,000 capital loss limitation?
(a) $5,000
(b) $13,000
(c) $14,000
(d) 0
(e) $8,000

Loss = $8000

Option (e) is correct.

Given:

Jerry sold stock to Julie for $5,000

The stock cost Jerry $10,000

Jerry sold Carol stock for $2,000 that cost $10,000

Here; it should be noted that, Jerry and Julie are brother and sister.

whereas;

Jerry and Carol are unrelated party.

Here, the total loss will be computed in regards with the unrelated party:

Loss = Price of stock - Selling price

Loss = $10000 - $2000

Loss = $8000

answer; ( prices are sticky);

so they can see what that city is producing and to also see if they can some how get that product. like gold in africa.