Sigma Corporation had the following capital gains and losses for 2014 through 2018:
?
$$\begin{array} { c c c c c }
2014 & 2015 & 2016 & 2017 & 2018 \
\$ 30,000 & \$ ( 20,000 ) & \$ 15,000 & \$ ( 30,000 ) & \$ 60,000
\end{array}$$
Sigma's net capital gain for 2018 is:

Question

Sigma Corporation had the following capital gains and losses for 2014 through 2018:
?
$$\begin{array} { c c c c c } 
2014 & 2015 & 2016 & 2017 & 2018 \
\$ 30,000 & \$ ( 20,000 ) & \$ 15,000 & \$ ( 30,000 ) & \$ 60,000
\end{array}$$
Sigma's net capital gain for 2018 is:

Quizplus · Accepted Answer

Sigma Corporation's net capital gain for 2018 is calculated by offsetting the capital losses from previous years against the capital gains. The net capital gain for 2018 is $60,000 - $5,000 (remaining loss from 2017 after offsetting with 2016 gain) = $55,000.

Sigma Corporation Had the Following Capital Gains and Losses for 2014