During 2017, Gorilla Corporation has net short-term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years' transactions included the following.

2013 net short-term capital gains	$40,000
2014 net long-term capital gains	18,000
2015 net short-term capital gains	25,000
2016 net long-term capital gains	20,000

If an amount is zero, enter "0".

a. How much is Gorilla's net capital loss for 2017? $

What is the amount of the capital loss deduction on Gorilla's 2017 tax return? $

Any excess net capital loss is carried back or forward as a short-term capital loss .

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Capital gains and losses result from the taxable sales or exchanges of capital assets. Whether these gains and losses are long-term or short-term depends upon the holding period of the assets sold or exchanged. Each year, a taxpayer's short-term gains and losses are combined, and long-term gains and losses are combined. The result is a net short-term capital gain or loss and a net long-term capital gain or loss.

b. Of the excess 2017 net capital loss, how much is carried back to the previous years? $

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Correct

c. Compute the amount of capital loss carryover to 2018 and future years. $

Indicate the years to which the loss may be carried. Select "Yes" or "No", which ever is appropriate.

2018	Yes
2019	Yes
2020	Yes
2021	Yes
2022	Yes

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Correct

d. If Gorilla is a sole proprietorship, rather than a corporation, how would the owner report these transactions on her 2017 tax return?

Gorilla offsets $ of capital gains against her capital losses and deducts an additional $ in capital losses . The remaining $ is carried forward indefinitely .

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Correct

e. Assume that Gorilla Corporations capital loss carryfoward in part (c) is $27,000, and that Gorilla will be able to use $11,000 of the carryover to offset capital gains in 2018 and the remaining $16,000 to offset capital gains in 2019.

Assume the following:

A discount rate of 5%.

Present value factors - 1.000 for 2014-2016; 0.952 for 2018 and 0.907 for 2020.

Gorilla Corporations marginal income tax rate is 34% for all tax years.

Round your computations to the nearest dollar.

In present value terms, determine the tax savings of the $105,000 long-term capital loss recognized in 2017. $