Everest Inc. reports taxable income of $900,000 before considering sales of stock. Everest Inc. sold two stockholdings this year, resulting in a long-term capital gain of $15,000 on stock A and a short-term capital loss of $5,000 on stock B. What is the extra tax that Everest will pay due to the sales of these stocks?
A) $2,100
B) $1,500
C) $2,000
D) $3,150
A) $2,100
A corporation can reduce its NLTCG by its NSTCL, but corporations do not have a preferential tax rate for ANCG. 21% × ($15,000 - $5,000) = $2,100.
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