Henritta is the sole shareholder of Quaker Corporation. Quaker's income from operations for the current year is $600,000. Included in the $600,000 amount are dividends of $10,000 from the stock of a 4%-owned corporation. Also included in the $600,000 is a $4,000 long-term loss realized on the sale of a stock investment in an unaffiliated corporation. To compute taxable income for the current year, Henritta should deduct a capital loss of
A)$- 0 -
B)$4,000
C)$3,000
D)$2,000
E)$1,000

Question

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The Answer of Henritta is the sole shareholder of Quaker Corporation. Quaker's income from operations for the current year is $600,000. Included in the $600,000 amount are dividends of $10,000 from the stock of a 4%-owned corporation. Also included in the $600,000 is a $4,000 long-term loss realized on the sale of a stock investment in an unaffiliated corporation. To compute taxable income for the current year, Henritta should deduct a capital loss of
A)$- 0 -
B)$4,000
C)$3,000
D)$2,000
E)$1,000

Henritta Is the Sole Shareholder of Quaker Corporation