Question
Global Corporation reports the following results for the current year: Gross profits on sales $142,000 Long-term capital gain 4,000 Long-term capital loss 10,000 Short-term capital
Global Corporation reports the following results for the current year:
Gross profits on sales | $142,000 |
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Long-term capital gain | 4,000 |
Long-term capital loss | 10,000 |
Short-term capital gain | 9,000 |
Short-term capital loss | 2,000 |
Operating expenses | 63,000 |
What are Global's taxable income and income tax liability for the current year?
Begin by computing Global's taxable income. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)
Gross profit on sales | $142,000 | |
Net capital gain | 1,000 | |
Gross income | 143,000 | |
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Minus: | Operating expenses | (63,000) |
Taxable income | $80,000 |
Now, compute Global's income tax liability.
Global's income tax liability = | $16,800 |
Requirement b. How would your answers to Part a change if
Global's short-term capital loss is $12,000 instead of $2,000?
Begin by computing Global's taxable income. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)
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Gross profit on sales | 142,000 | |
Gross income | 142,000 | |
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Minus: | Operating expenses | (63,000) |
Taxable income | $79,000 |
Now, compute Global's income tax liability.
Global's income tax liability = | $16,590 |
What carrybacks and/or carryovers are available to other tax years? (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)
Type of carryback/carryover | Amount | ||
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