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C:3-47 Capital Gains and Losses. Western Corporation reports the following results for the current year: Gross profits on sales $150,000 Long-term capital gain 8,000 Long-term
C:3-47 Capital Gains and Losses. Western Corporation reports the following results for the current year: Gross profits on sales $150,000 Long-term capital gain 8,000 Long-term capital loss 15,000 Short-term capital gain 10,000 Short-term capital loss 2,000 Operating expenses 61,000 a. What are Western's taxable income and income tax liability for the current year? b. How would your answers to Part a change if Western's short-term capital loss is $5,000 instead of $2,000? C:3-47 Capital Gains and Losses. Western Corporation reports the following results for the current year: Gross profits on sales $150,000 Long-term capital gain 8,000 Long-term capital loss 15,000 Short-term capital gain 10,000 Short-term capital loss 2,000 Operating expenses 61,000 a. What are Western's taxable income and income tax liability for the current year? b. How would your answers to Part a change if Western's short-term capital loss is $5,000 instead of $2,000
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