Robin Corporation has ordinary income from operations of $30,000,net long-term capital gain of $10,000,and net short-term capital loss of $15,000.What is the taxable income for 2014?

Question

Quizplus · Accepted Answer

The net capital loss is $5,000 ($15,000 NSTCL - $10,000 NLTCG).However,corporate taxpayers are not permitted to deduct net capital losses against ordinary income.Therefore,the taxable income of $30,000 consists of the ordinary income from operations.

Robin Corporation Has Ordinary Income from Operations of $30,000,net Long-Term