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 2017?
a. $25,000
b. $27,000
c. $28,500
d. $30,000
e. None of the above
d
RATIONALE: 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.
You might also like to view...
The probabilities of different returns on a stock over the year are: Probability Return 10% -5% 15% 0% 20% 5% 30% 10% 25% 20% The expected return on the stock is ____ percent.
A. 8.5 B. 9.0 C. 9.5 D. 10.0
A two-dimensional graph representing the data using different shades of color to indicate magnitude is called a
A. heat map. B. bubble chart. C. column chart. D. pie chart.
In almost all countries, roads, seaports, airports, rail and canals have this in common
A) They were built and/or managed by the government. B) They are located near the water. C) They are the source of most of the tax revenue for municipalities. D) They are staffed by foreign nationals.
In theory multinational firms are in a better position than domestic firms to support higher debt ratios
Indicate whether the statement is true or false.