In 2014,the first year of its existence,Chartreuse Corporation had a net capital loss of $3,000.In 2015 and 2016,it had net capital gains of $5,000 and $8,000,respectively.In 2017,the company reported a net capital loss of $12,000.What is the amount of capital loss carryforward to 2018?

Question

Quizplus · Accepted Answer

To calculate the capital loss carryforward, we need to add up the net capital gains and losses from previous years.

- In 2014, the net capital loss was $3,000. 
- In 2015 and 2016, the net capital gains were $5,000 and $8,000, respectively. 
- In 2017, the net capital loss was $12,000.

To calculate the capital loss carryforward to 2018, we need to subtract the total net capital gains from the total net capital losses:

$3,000 (loss in 2014) + $5,000 (gain in 2015) + $8,000 (gain in 2016) + $12,000 (loss in 2017) = $4,000 (total net capital loss)

Since the total net capital loss is positive, the capital loss carryforward to 2018 is $2,000 (half of the total net capital loss). Therefore, the correct answer is (C) ($2,000).

In 2014,the First Year of Its Existence,Chartreuse Corporation Had a Net