Billingsworth Corporation has the following net capital gains and losses for 2018 through 2021. Billingsworth' marginal tax rate is 21% for 2018 through 2021.
2018
2019
2020
2021
$8,000
$3,000
$6,500
$(9,000)
?
In 2021, Billingsworth Corporation earned a net operating income of $30,000. What is/are the tax effect(s) of the $9,000 net capital loss in 2021?
I.Corporate taxable income is $21,000.II.The net capital loss will provide income tax refunds of $1,890.?

A. Only statement I is correct.
B. Only statement II is correct.
C. Both statements are correct.
D. None of the statements are correct.


Answer: B

Business

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