Dallas Corporation, not a dealer in securities, realizes taxable income of $60,000 from the operation of its business. Additionally, in the same year, Dallas realizes a long-term capital loss of $10,000 from the sale of marketable securities. If the corporation realizes no other capital gains or losses, what is the proper treatment for the $10,000 long-term capital loss on the tax return? Carry the $10,000 long-term capital loss back three years as a short-term capital loss, then forward five years. Use $10,000 of the long-term capital loss to reduce taxable income. Use $6,000 of the loss to reduce taxable income and carry $4,000 of the long-term capital loss forward for five years. Use $3,000 of the loss to reduce taxable income and carry $7,000 of the long-term capital loss forward for five years. Bread Corporation is a C corporation with earnings of $100,000. It paid $20,000 in dividends to its sole shareholder, Gerald. Gerald also owns 100% of Butter Corporation, an Scorporation. Butter had net taxable income of $80,000 and made a $15,000 distribution to Gerald. What income will Gerald report from Bread and Butter's activities? $95.000 $180,000 $100,000 $35,000