During 2021, Gorilla Corporation, a calendar year C 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:2017 net short-term capital gains$40,0002018 net long-term capital gains18,0002019 net short-term capital gains25,0002020 net long-term capital gains20,000thitam d. If Gorilla is a sole proprietorship, rather than a corporation, how would these transactions be reported in the proprietor's 2021 taxreturn?Gorilla offsets sof capital gains against herlosses andan additionalin capitalThe remaining $ise. Assume that Gorilla Corporation's capital loss carryforward in part (c) is $27,000 and that Gorilla will be able to use $11,000 of thecarryover to offset capital gains in 2022 and the remaining s16.000o to offset capital gains in 2023. Determine the tax savings of the$105,000 long-term capital loss recognized in 2021.Assume a discount rate of 5%. The present value factors at 5% are as follows: 1.000 for 2018-2021; 0.9524 for 2022 and 0.9070 for 2023.Gorilla Corporation's marginal income tax rate is 34% for all tax years prior to 2018.Round your computations to the nearest dollar.In present value terms, the tax savings of the s105,000 long-term capital loss recognized in 2021 is $

This benefit is computed by multiplying the interest expenditure by the tax rate, and it is only…

2021, Gorilla Corporation, a calendar year C corporation, has net short-term capital gains ofs $105,000, and taxable income from other sources of $460,000. Prior years' transactions included the 2017 net short-term capital gains $40,000 2018 net long-term capital gains 18,000 2019 net short-term capital gains 25.000

2021, Gorilla Corporation, a calendar year C corporation, has net short-term capital gains ofs $105,000, and taxable income from other sources of $460,000. Prior years' transactions included the 2017 net short-term capital gains $40,000 2018 net long-term capital gains 18,000 2019 net short-term capital gains 25.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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