In 2019, Bluebird Corporation had net income from operations of $100,000. Further, Bluebird recognized a long-term capital gain of $30,000 and a short-term capital loss of $45,000. Which of the following statements is correct? Question 22 options: Bluebird will have taxable income in 2019 of $100,000 and will have a net capital loss of $15,000 that can be carried back 3 years and forward 5 years. Blue Corporation may use the capital loss to offset the capital gain and must carry the net capital loss of $15,000 forward five years as a short-term capital loss. Bluebird Corporation may deduct $33,000 of the capital loss in 2019 and may carry forward the remainder of the loss indefinitely to offset capital gains Bluebird Corporation will have taxable income in 2019 of $85,000. None of the above.
In 2019, Bluebird Corporation had net income from operations of $100,000. Further, Bluebird recognized a long-term capital gain of $30,000 and a short-term capital loss of $45,000. Which of the following statements is correct?
Question 22 options:
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Bluebird will have taxable income in 2019 of $100,000 and will have a net capital loss of $15,000 that can be carried back 3 years and forward 5 years. |
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Blue Corporation may use the capital loss to offset the capital gain and must carry the net capital loss of $15,000 forward five years as a short-term capital loss. |
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Bluebird Corporation may deduct $33,000 of the capital loss in 2019 and may carry forward the remainder of the loss indefinitely to offset |
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Bluebird Corporation will have taxable income in 2019 of $85,000. |
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None of the above. |
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