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Evans Corporation Has a $15,000 Net Capital Loss in 2011

Question 36

Multiple Choice

Evans Corporation has a $15,000 net capital loss in 2011.The corporation reported the following capital gain net income during the past three years.Identify which of the following statements is true. Evans Corporation has a $15,000 net capital loss in 2011.The corporation reported the following capital gain net income during the past three years.Identify which of the following statements is true.   A) The loss is used to offset the gains from 2010 and then carried back to offset $10,000 of the gains in 2008. B) The loss is used to offset the $11,000 of the 2009 gains and then carried back to offset $4,000 of the year 2008 net gain. C) The loss is used to offset $3,000 of the current year ordinary income,all of the year 2008 capital gains,and $7,000 of the year 2009 net gain. D) The loss is used to offset the year 2008 net gains,then $5,000 of the year 2009 net gains.


A) The loss is used to offset the gains from 2010 and then carried back to offset $10,000 of the gains in 2008.
B) The loss is used to offset the $11,000 of the 2009 gains and then carried back to offset $4,000 of the year 2008 net gain.
C) The loss is used to offset $3,000 of the current year ordinary income,all of the year 2008 capital gains,and $7,000 of the year 2009 net gain.
D) The loss is used to offset the year 2008 net gains,then $5,000 of the year 2009 net gains.

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