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Mandarini Mandarini
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6 years ago
Evans Corporation has a $15,000 net capital loss in 2011. The corporation reported the following capital gain net income during the past three years. Identify which of the following statements is true.

Year   Capital Gain
Net Income
2008
2009
2010   $10,000
 11,000
   5,000

A) The loss is used to offset the gains from 2010 and then carried back to offset $10,000 of the gains in 2008.
B) The loss is used to offset the $11,000 of the 2009 gains and then carried back to offset $4,000 of the year 2008 net gain.
C) The loss is used to offset $3,000 of the current year ordinary income, all of the year 2008 capital gains, and $7,000 of the year 2009 net gain.
D) The loss is used to offset the year 2008 net gains, then $5,000 of the year 2009 net gains.
Textbook 
Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts

Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts


Edition: 27th
Authors:
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RimounRimoun
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6 years ago
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More solutions for this book are available here
D
Explanation:  D) The net capital loss is carried back to the year 2008 and then used to offset capital gains in subsequent tax years.
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Mandarini Author
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6 years ago
Thank you!!
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