Carrot Corporation, a C corporation, has a net short-term capital gain of $65,000 and a net long-term capital loss of $250,000 during 2016. Carrot Corporation had taxable income from other sources of $720,000. Prior years' transactions included the following: Compute the amount of Carrot's capital loss carryover to 2017.
A) $0
B) $32,000
C) $45,000
D) $185,000
E) None of the above
Correct Answer:
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