93. Calzone Trucking Company is a corporation that is 100% owned by Fred Calzone.

Before he incorporated in 2010, Fred had operated the business as a sole proprietorship.

The taxable income (loss) of Calzone for 2010 through 2012 is as follows:

2010 2011 2012

Taxable income (loss) $32,000 $(64,000) $18,000

The 2012 taxable income includes a net long-term capital gain of $4,000. Calzone

Truckings 2013 operating income is $43,300 before considering the following

transactions:

a. A hailstorm caused part of the roof of the truck barn to collapse. A truck inside

sustained damage from the falling debris. The truck barn had a fair market

value of $59,000 before the damage and an adjusted basis of $35,000. Repairs

to the roof cost $13,200, of which $9,700 was reimbursed by insurance. The

truck, which had an adjusted basis of $35,000, was worth $62,000 before the

damage and had a fair market value after the damage of $37,000. Calzone

Truckings insurance company paid $16,600 for the damages.

b. Another truck was totally destroyed when its brakes failed and it plunged off a

cliff. Fortunately, the driver was able to jump from the truck and escaped

unharmed. The truck, which had an adjusted basis of $24,000, was worth

$30,000 before the accident. Calzone received $13,700 from its insurance

company for the destruction of the truck. In addition, the company was cited

for failure to properly maintain the truck and paid a $7,250 fine to the state

trucking commission.

c. Calzone sold equipment that had become obsolete for $10,800. The equipment

had cost $28,000, and depreciation of $15,400 had been taken on it

before the sale.

d. Calzone sold stock it owned in two other companies. Retro Corporation

stock, which had cost $21,400, sold for $36,200. Shares of Tread Corporation

stock with a cost of $62,100 sold for $31,700. Both stocks had been purchased

in 2009.

e. Freds son wanted to start a delivery business. To help his son out, Fred sold

him one of Calzones used trucks for $8,000. The truck had a fair market

value of $15,200 and an adjusted basis of $10,100 at the date of the sale.

Calculate Calzone Truckings 2013 taxable income. Indicate the amount and the

effect of any carryforwards or carrybacks on Calzone Truckings current, past, or

future income.