First Corporation, a C corporation in its 5th year of operations, has taxable income
, exclusive of capital gains and losses, of $30,000. In addition, First Corporation has the following capital gains and losses in the current year: Short-Term Capital Gain - $8,000; Short-Term Capital Loss - $20,000; Long-Term Capital Gain - $10,000; Long-Term Capital Loss - $4,000. For the current year, First Corporation will have:
a. Taxable income of $24,000.
b. Taxable income of $30,000; capital gain income of $6,000 taxed at a 20% rate, and capital loss carryback of $12,000.
c. Taxable income of $30,000 and capital loss carryback of $6,000.
d. Taxable income of $36,000 and capital loss carryback of $12,000.