In 2021, X Corp incurred a net capital loss in the amount of $50,000. X Corp had the following net capital gains in the previousfive years:2020 - $8,0002019 - $5,0002018 - $10,0002017 - $8,0002016 - $3,000How much of the 2021 capital loss can X Corp carry over to 2022?

Capital loss refers to the loss which is incurred due to the decrease in the value of capital assets…

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How much of the 2021 capital loss can X Corp carry over to 2022?

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

In 2021, X Corp incurred a net capital loss in the amount of $50,000. X Corp had the following net capital gains in the previous
five years:
2020 - $8,000
2019 - $5,000
2018 - $10,000
2017 - $8,000
2016 - $3,000
How much of the 2021 capital loss can X Corp carry over to 2022?

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