John Budd is the sole shareholder of Ral Corp., an accrual-basis taxpayer engaged in wholesaling operations. Ral's retained earnings at January 1,2023, amounted to $1 million. For the year ended December 31,2023 , Ral's book income, before federal income tax, was $300,000, Included in the computation of this $300,000 were the following: Dividends received on 500 shares of stock of a taxable domestic corporation that had 1,000,000 shares of stockputstanding (Ral had no portfolio indebtedness) $1,000 Loss on sale of investment in stock of unaffiliated corporation (this stock had been held for 2 years: Ret had no other capltat gain's or tosses) (5,000) In computing taxable income for 2023, Ral should deduct a capital loss of $3,000 50 $2.500 $5,000