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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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First Corporation, a C corporation in its 5th year of operations,

Customer Question

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.
Submitted: 6 years ago.
Category: Tax
Expert:  RD replied 6 years ago.

RD :

c. Taxable income of $30,000 and capital loss carryback of $6,000.