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21 August, 15:19

Goose Corporation, a C corporation, incurs a net capital loss of $12,000 for 2016. It also has ordinary income of $10,000 in 2016. Goose had net capital gains of $2, 500 in 2012 and $5,000 in 2015. Determine the amount, if any, of the net capital loss of $12,000 that is deduct ible in 2016. Determine the amount, if any, of the net capital loss of $12,000 that is carried forward to 2017

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  1. 21 August, 15:40
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    Amount carried forward = $7000

    Explanation:

    Given:

    net capital loss of $12,000

    ordinary income of $10,000

    had net capital gains of $5,000

    Net capital loss carried forward=?

    Computation of net capital loss carried forward:

    Net capital loss carried forward = $12,000 - $5,000

    Net capital loss carried forward = $7,000

    Note: $2,500 not carried forward
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