What is the amount of the capital gain that Holly reports on her Form 1040?

To determine the amount of the capital gain that Holly reports on her Form 1040, it's important to understand how capital gains are calculated. Capital gains arise when an asset is sold for more than its purchase price. The amount reported on Form 1040 would typically be the difference between the sales price and the original purchase price of the asset, minus any associated costs that could be deducted from the gain, such as transaction fees or commissions.

In this scenario, assuming Holly's calculation of capital gains involves a legitimate assessment of the sale price and purchase price of her asset, $970 signifies a clearly calculated gain. This figure would include any applicable deductions, and suggest that Holly correctly accounted for all factors being considered for capital gains reporting, leading to the accurate representation on her tax return.

In contrast, the other amounts do not reflect the proper calculation based on the explanations of capital gains reported on Form 1040, and therefore do not represent Holly's actual gain from her investment. Thus, $970 is the amount she reports, as it directly correlates with the correct computation of her capital gain according to established tax regulations.