Tatoo Inc. reported a net capital loss of $13,000 in 2017. It had a net capital gain of$4,300 in 2015 and $3,000 in 2014. In 2016, although the company suffered a netoperating loss, it had net capital gains of $1,000. What is the amount of Tatoo's capital loss carryover remaining after it applies the carryback?
A) $5,700.
B) $13,000.
C) $4,700.
D) $8,700.

Question

Quizplus · Accepted Answer

Tatoo Inc. can carry back the $13,000 capital loss to offset the net capital gains from 2015 ($4,300), 2014 ($3,000), and 2016 ($1,000), totaling $8,300. This leaves a remaining capital loss carryover of $13,000 - $8,300 = $4,700.

Tatoo Inc Reported a Net Capital Loss of $13,000 in 2017