In the current year, ABC Corporation had the following items of income, expense, gains, and losses: What is taxable income for the year?

Question

In the current year, ABC Corporation had the following items of income, expense, gains, and losses:  What is taxable income for the year?

Quizplus · Accepted Answer

Corporations cannot offset net capital losses against ordinary income. ($500,000 - $270,000 - $100,000 + $14,000 = $144,000). $6,000 of the loss offsets $6,000 of the gain. The remaining loss of $9,000 may be carried back three years and forward five years.

In the Current Year, ABC Corporation Had the Following Items