The Corinth Corporation is incorporated in 2015 and had no capital asset transactions during the year. From 2015 through 2015, the company had the following capital gains and losses:
?
$$\begin{array} { l c c c c }
& 2015 & 2015 & 2017 & 2018 \
\text { Capital Gains } & \$ 18,000 & \$ 12,000 & \$ 20,000 & \$ 21,000 \
\text { Capital Losses } & ( 7,000 ) & ( 16,000 ) & ( 26,000 ) & ( 31,000 )
\end{array}$$
If Corinth's marginal tax rate during 2015 to 2017 was 34% and is 21% in 2018, what is the effect of Corinth's capital gains and losses on the amount of tax due each year?

Question

The Corinth Corporation is incorporated in 2015 and had no capital asset transactions during the year. From 2015 through 2015, the company had the following capital gains and losses:
?
 $$\begin{array} { l c c c c } 
& 2015 & 2015 & 2017 & 2018 \
\text { Capital Gains } & \$ 18,000 & \$ 12,000 & \$ 20,000 & \$ 21,000 \
\text { Capital Losses } & ( 7,000 ) & ( 16,000 ) & ( 26,000 ) & ( 31,000 )
\end{array}$$ 
If Corinth's marginal tax rate during 2015 to 2017 was 34% and is 21% in 2018, what is the effect of Corinth's capital gains and losses on the amount of tax due each year?

Quizplus · Accepted Answer

The Answer of The Corinth Corporation is incorporated in 2015 and had no capital asset transactions during the year. From 2015 through 2015, the company had the following capital gains and losses:
?
 $$\begin{array} { l c c c c } 
& 2015 & 2015 & 2017 & 2018 \
\text { Capital Gains } & \$ 18,000 & \$ 12,000 & \$ 20,000 & \$ 21,000 \
\text { Capital Losses } & ( 7,000 ) & ( 16,000 ) & ( 26,000 ) & ( 31,000 )
\end{array}$$ 
If Corinth's marginal tax rate during 2015 to 2017 was 34% and is 21% in 2018, what is the effect of Corinth's capital gains and losses on the amount of tax due each year?

The Corinth Corporation Is Incorporated in 2015 and Had No