Bill sells stock that he bought 3 years ago for a $3,000 loss. He also sells his personal automobile for $10,000 less than he paid for it. Bill's taxable income before taking into consideration these
two transactions is $50,000. What is Bill's taxable income and loss carryforward after including his capital transactions?
a. $47,000 taxable income: $0 loss carryforward
b. $50,000 taxable income; $13,000 loss carryforward
c. $37,000 taxable income; $0 loss carryforward
d. $47,000 taxable income; $10,000 loss carryforward