Langtry Corporation recognized $798,000 ordinary income, $13,000 net Section 1231 loss, and $6,000 net capital loss this year. Langtry's taxable income is $785,000.

Name: Langtry Corporation recognized $798,000 ordinary income, $13,000 net Section 1231 loss, and $6,000 net capital loss this year. Langtry's taxable income is $785,000.
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Question

Quizplus · Accepted Answer

The net Section 1231 loss and net capital loss can be used to offset the ordinary income, resulting in a taxable income of $785,000.

Langtry Corporation Recognized $798,000 Ordinary Income, $13,000 Net Section 1231