What is the amount of Holly's long-term capital gain reported on her Schedule D?

To determine Holly's long-term capital gain reported on her Schedule D, it's essential to understand how capital gains are calculated. Long-term capital gains arise when you sell an asset that you've held for more than one year at a price that exceeds the basis (the cost or investment in the asset). The difference between the selling price and the basis gives you the capital gain.

In this case, if Holly's long-term capital gain is reported as $170, it indicates that she sold a long-term asset (like stocks or real estate) for more than she paid for it, by that exact amount. This figure signifies her net gain after considering her total costs associated with the asset.

As for the other answers, an amount of $0 suggests there were no capital gains, which contradicts the information given. The choices of $150 and $6,550 are also not supported by the calculations made, thus reinforcing that $170 is indeed the accurately computed long-term capital gain for Holly. By understanding the nature of capital gains and how they are recorded on Schedule D, one can effectively ascertain the correct amount.