2) A C corporation incurred a $438,000 capital loss in Year 4 and has the following tax information:

	Year 4	Year 3	Year 2	Year 1
Capital gain (loss)	($438,000)	$11,000	$21,000	$0
Taxable income (loss)	750,000	31,000	17,000	25,000

What amount of capital loss is available for carryover to future tax years?

A.$406,000

B.$410,000

C.$427,000

D.$438,000

On May 1, Year 2, a taxpayer was bequeathed 500 shares of common stock. The deceased relative had paid $2,500 for the stock in Year 0. Fair market value of the stock on May 1, Year 3, the date of death, was $4,000, which increased to $5,500 six months later. The executor of the estate elected the alternate valuation date for estate tax purposes, and the taxpayer has not sold the stock. How much income should the taxpayer report for the inheritance of the 500 shares of stock in the Year 2 individual income tax return?

A.$5,500

B.$4,000

C.$2,500

D.$0