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

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 56P

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During 2020, 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: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years. c.Compute the amount of capital loss carryforward, if any, and indicate the years to which the loss may be carried.
During 2020, 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: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 If an amount is zero, enter "0". a. Answer the following to determine how are the capital gains and losses treated on Gorilla's 2020 tax return. How much is Gorilla's net capital loss for 2020?$ What is the amount of the capital loss deduction on Gorilla's 2020 tax return?$ Any excess net capital loss is carried back or forward as a short-term capital loss . b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years. Carried back to 2017 $ Carried back to 2018 $ Carried back to 2019 $…
During 2020, 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: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 How are the capital gains and losses treated on Gorilla’s 2020 tax return? Determine the amount of the 2020 capital loss that is carried back to each of the previous years. Compute the amount of capital loss carryforward, if any, and indicate the years to which the loss may be carried. If Gorilla is a sole proprietorship rather than a corporation, how would the owner report these transactions on her 2020 tax return? Assume that Gorilla Corporation’s capital loss carryfoward in part (c) is $27,000 and that Gorilla will be able to use $11,000 of the…
During 2020, Gorilla Corporation, a calendar year C corporation, has net shortterm 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: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 a. How are the capital gains and losses treated on Gorilla’s 2020 tax return? b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years. c. Compute the amount of capital loss carryforward, if any, and indicate the years to which the loss may be carried. d. If Gorilla is a sole proprietorship rather than a corporation, how would the owner report these transactions on her 2020 Tax return e. Assume that Gorilla Corporation’s capital loss carryfoward in part (c) is $27,000 and that Gorilla will be able to use $11,000 of…
A corporation in 2017 expects a gross income of $500,000, total operating expenses of $400,000, and capital investments of $20,000. In addition thecorporation is able to declare $60,000 of depreciation charges for the year. What is the expected taxable income and total federal income taxes owed for the year 2017?
LO.1 During 2023, 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: 2019 net short-term capital gains 2020 net long-term capital gains 2021 net short-term capital gains 2022 net long-term capital gains a. How are the capital gains and losses treated on Gorilla's 2023 tax return? b. Determine the amount of the 2023 capital loss that is carried back to each of the previous years. $40,000 18,000 25,000 20,000 c. Compute the amount of capital loss carryforward, if any, and indicate the years to which the loss may be carried. d. e. If Gorilla is a sole proprietorship rather than a corporation, how would these transactions be reported in the proprietor's 2023 tax return? 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 the…
Harrison Corporation generates capital gains/(losses) of $30,000, $2,000, ($40,000) in 2017, 2018, and 2019, respectively. Harrison started operating in 2017. What is Harrison’s capital loss carryforward into 2020?
In 2020, Ace Corporation reports gross income of $200,000 (including $150,000 of profit from its operations and $50,000 in dividends from less-than-20%-owned domestic corporations) and $230,000 of operating expenses. A. What is Ace’s NOL for 2020 B. Assume that Ace expects 2021’s taxable income to be $20,000 and 2022’s taxable income to be $100,000, both before any NOL deduction in the carryover year. What NOL deductions can Ace expect to claim in 2021 and 2022 C. How would your answer to Part b change if, in addition to the 2020 NOL, Ace also had a $5,000 NOL carryover from a loss occurring before 2018?
The accounting income (loss) figures for Flounder Corporation are as follows: 2018 $162,000 2019 246,000 2020 84,000 2021 (162,000) 2022 (385,000) 2023 140,000 2024 156,000 Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a 30% tax rate for 2018 and 2019, and a 25% tax rate for the remaining years. Prepare the journal entries for each of the years 2020 to 2024 to record income tax expense and the effects of the tax loss carrybacks and carryforwards, assuming Flounder uses the carryback provision first. All income and losses relate to normal operations and it is more likely than not that the company will generate substantial taxable income in the future. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Year Account Titles and Explanation Debit…
For each of the following cases, determine the amount of capital gain or loss to report in each year (after taking into account any applicable carrybacks) and the capital loss carryforward to 2019, if any. Capital gain or loss for year indicated Corporation 2013 2014 2015 2016 2017 2018 4,700 $11,600 $(14,550) $ 7,000 $ 4,950 $(1,450) 3,870 3,010 6,290 11,550 (61,490) 9,350 8,550 4,950 (3,040) 2,970 3,340 15,00е (26,810) (24,600) 8, 200 11,150 2,680 2,250 Assume that 2013 is the first year of operation for each corporation. (Do not leave cells blank, enter "0" if there is no effect.) Carried forward capital losses Reported capital gains Corporation 2013 2014 2015 2016 2017 2018 2019 A B C
The pretax financial income (or Loss) figures for Limerick co. are as follows: 2017 83,000 2018 (53,000) 2019 (36,000) 2020 115,000 2021 104,000 Pretax financial income( or loss) and taxable income(loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years. Prepare the journal entires for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforward. All income and losses relate to normal operations (in recording the benefits of a loss carryforward assume that no valuation account is deemed necessary.
Pronghorn Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) $52,800 (77,000) 99,000 33,000 115,500 (66,000) 142,000 Tax Rate 2015 25% 2016 20% 2017 2018 20% 20% 2019 20% 2020 25% 2021 25% Pretax financial income (loss) and taxable income (loss) were the same for all years since Pronghorn has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. What entries for income taxes should be recorded for 2016? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Indicate what the income tax expense portion of the income statement for 2016 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign…