Ms. Leslie Little is a full time architect. To help finance her various hobbies, she grows carrots for sale in a little plot next to her house. Although she has no farming background, in most years she has made a small profit selling at a monthly farmers' market in the summer. She has reasonable expectation of profit. However, she incurred a loss in 2020 of $13000 due to a lawsuit claiming her carrots were bad. A portion of this could be deducted in 2020. After deducting this portion in 2020, calculate the remaining farm loss carry over available to her for future years (2021 and beyond, to be applied against farm income). What is the amount of this loss carry over available to her in future years?

Ms. Leslie Little is a full time architect. To help finance her various hobbies, she grows carrots for sale in a little plot next to her house. Although she has no farming background, in most years she has made a small profit selling at a monthly farmers' market in the summer. She has reasonable expectation of profit. However, she incurred a loss in 2020 of $13000 due to a lawsuit claiming her carrots were bad. A portion of this could be deducted in 2020. After deducting this portion in 2020, calculate the remaining farm loss carry over available to her for future years (2021 and beyond, to be applied against farm income). What is the amount of this loss carry over available to her in future years?

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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