Question 1:

Tatoo Inc. reported a net capital loss of $13,800 in 2018. The company had a net capital gain of $5,100 in 2016 and $3,800 in 2015. In 2017, although the company suffered a net operating loss, it had net capital gains of $1,800. What is the amount of Tatoo's capital loss carryover remaining after it applies the carryback?

Multiple Choice

A. $4,900.

B. $8,700.

C. $13,800.

D. $3,100.

Question 2:

Jazz Corporation owns 50% of the Williams Corp. stock. Williams distributed a $16,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income before the dividend was $100,600. What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.?

Multiple Choice

A. $0.

B. $8,000.

C. $10,400.

D. $16,000.

Question 3:

Jazz Corporation owns 10% of the Williams Corp. stock. Williams distributed a $13,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($2,300). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.?

Multiple Choice

A. $0.

B. $5,350.

C. $6,500.

D. $8,975.

E. None of the choices is correct.