Everest Inc.reports taxable income of $900,000 before considering sales of stock.Everest Inc.sold two stockholdings this year,resulting in a long-term capital gain of $15,000 on stock A and a short-term capital loss of $5,000 on stock B.What is the extra tax that Everest will pay due to the sales of these stocks?

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Quizplus · Accepted Answer

The net capital gain is $10,000 ($15,000 gain - $5,000 loss). The corporate tax rate on capital gains is typically 21%, so the extra tax is $10,000 * 21% = $2,100.