In 2014, Rick had a $12,000 gain on the sale of stock purchased three years ago, a $7,000 loss on

In 2014, Rick had a $12,000 gain on the sale ofstock purchased three years ago, a $7,000 loss onthe sale of a personal use automobile, and a $3,000loss from the sale of land used in his business(owned for six years). These are Rick’s onlyproperty transactions during the year. Once thenetting process is complete, on his tax return Rick’sgains and losses will be treated as:—-a $3,000 ordinary loss and a $9,000 netlong-­term capital loss.a $2,000 net capital gain.a $3,000 ordinary loss and a $12,000 netcapital gain.a $9,000 net capital gain.none of the above.————————————————————————————–28.Please provide an explanationA warehouse was damaged in a storm. Thewarehouse was worth $225,000 before the casualtyand $65,000 after the casualty. The taxpayer’sadjusted basis in the warehouse was $77,000. Theinsurance company reimbursed the taxpayer$150,000 for its loss. To avoid paying tax on therealized gain, how much must the taxpayer reinvestand in what type of property?—-1) $77,000 in another warehouse2) $150,000 in any other business orinvestment realty3) $77,000 in any other business orinvestment realty4) $160,00 in another warehouse5) None of the above.