1. Terra Corporation (a C corporation) had an operating loss of $6,000 for 2021. Terra sold a number of investments in 2021 which resulted in a net long-term capital loss (NTLCL) of $9,000. In addition, Terra, which owns 25% of the stock of Blue Corporation, received a dividend of $48,000 from Blue. 
2. Note: the operating loss only includes revenue and expenses directly related to operations (it does not include any capital transactions or dividends).
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4. Determine Terra Corporation’s taxable income and tax liability for 2021.