Brown Corporation has the following items for Year 1. Its income statement is as follows. There are no NOL and capital loss carryback, and DPAD.

Income

Sales 100

Dividends received from stock investments in

Less than 50% owned U.S. corporations 30

Interest income

City of Flint bonds 10

Google bonds 20

Total capital gains 20

Life insurance receipt from the pass-away of CEO Janet. 50

Expenses

Cost of goods sold 30

Salaries expenses 20

Total Capital Loss 22

Interest expense:

Loan to purchase City of Flint bonds 12

Other business loans 11

Depreciation for book purpose* 20

Premiums on term life insurance policies on lives

of CEO Janet and Kim 32

*Depreciation for tax purposes is $30

The following questions all concern about Year 1.

(e) How much net capital loss deduction can Brown take in Year 1? (2pts)