In 2020, Livernois Corporation had net income from operations of $100,000. In addition, Livernois recognized a long-term capital gain of $25,000 a short-term capital gain of $5,000 and a short-term capital loss of $45,000. Which of the following statements is correct? Select one: a. Livernios Corporation will have taxable income in 2020 of $100,000 and will have a net capital loss of $15,000 that can be carried back 3 years and forward 5 years. b. Livernois Corporation will have taxable income of $125,000 and will have a net capital loss of $40,000 that can be carried back 3 years and forward 5 years. c. Livernois Corporation may deduct $30,000 of the capital loss from operating income in 2020. d. Livernois Corporation will have taxable income of $85,000 for 2020. e. None of the above.
In 2020, Livernois Corporation had net income from operations of $100,000. In addition, Livernois recognized a long-term capital gain of $25,000 a short-term capital gain of $5,000 and a short-term capital loss of $45,000. Which of the following statements is correct? Select one: a. Livernios Corporation will have taxable income in 2020 of $100,000 and will have a net capital loss of $15,000 that can be carried back 3 years and forward 5 years. b. Livernois Corporation will have taxable income of $125,000 and will have a net capital loss of $40,000 that can be carried back 3 years and forward 5 years. c. Livernois Corporation may deduct $30,000 of the capital loss from operating income in 2020. d. Livernois Corporation will have taxable income of $85,000 for 2020. e. None of the above.
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 23CE
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Question
In 2020, Livernois Corporation had net income from operations of $100,000. In addition, Livernois recognized a long-term capital gain of $25,000 a short-term capital gain of $5,000 and a short-term capital loss of $45,000. Which of the following statements is correct?
Select one:
a.
Livernios Corporation will have taxable income in 2020 of $100,000 and will have a net capital loss of $15,000 that can be carried back 3 years and forward 5 years.
b.
Livernois Corporation will have taxable income of $125,000 and will have a net capital loss of $40,000 that can be carried back 3 years and forward 5 years.
c.
Livernois Corporation may deduct $30,000 of the capital loss from operating income in 2020.
d.
Livernois Corporation will have taxable income of $85,000 for 2020.
e.
None of the above.
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