Dooly Corp. incurred net short$-$term capital gains of $$50,000$ and net long$-$term capital losses of $$95,000$ during the current year. Taxable income from other sources was $$600,000.$ How are the capital gains and losses treated on this year$$s tax return, Form $1120?$

A$.$

$$3,000$ of the excess net long$-$term capital losses are deducted currently, and the $$42,000$ remainder is carried forward indefinitely.

B$.$

Excess net long$-$term capital losses are fully deductible in the current year.

C$.$

None of the excess net long$-$term capital losses are currently deductible but may be carried back to the $3$ preceding years and then forward $5$ years as short$-$term capital losses.

D$.$

Excess net long$-$term capital losses of $$50,000$ are carried back $2$ years and then carried forward $20$ years as short$-$term capital losses.