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Evans Corporation Has a $15,000 Net Capital Loss in 2017

Question 21

Multiple Choice

Evans Corporation has a $15,000 net capital loss in 2017. The corporation reported the following capital gain netting in income during the past three years. Identify which of the following statements is true. Evans Corporation has a $15,000 net capital loss in 2017. The corporation reported the following capital gain netting in income during the past three years. Identify which of the following statements is true.   A) The loss is used to offset the gains from 2016 and then carried back to offset $10,000 of the gains in 2014. B) The loss is used to offset the $11,000 of the 2015 gains and then carried back to offset $4,000 of the year 2014 net gain. C) The loss is used to offset $3,000 of 2014, 2015 and 2016 capital gains, remaining amount carried forward at $3,000 a year until expired. D) The loss is used to offset the year 2014 net gains, then $5,000 of the year 2015 net gains.


A) The loss is used to offset the gains from 2016 and then carried back to offset $10,000 of the gains in 2014.
B) The loss is used to offset the $11,000 of the 2015 gains and then carried back to offset $4,000 of the year 2014 net gain.
C) The loss is used to offset $3,000 of 2014, 2015 and 2016 capital gains, remaining amount carried forward at $3,000 a year until expired.
D) The loss is used to offset the year 2014 net gains, then $5,000 of the year 2015 net gains.

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