rated in 2018, and its tax records provide the following information: 2018 2019 2020 2021 Ordinary income $ 443,000 $ 509,700 $ 810,300 $ 921, Net capital gain 22,000 0 4,120 13, Taxable income $ 465,000 $ 509,700 $ 814,420 $ 934, Required: a.Compute Zeno’s tax refund from the carryback of its 2022 nondeductible capital loss. Zeno’s marginal tax rate was 21 percent for each prior year. b. Compute Zeno’s
Zeno, Incorporated sold two capital assets in 2022. The first sale resulted in a
$53,000 capital loss, and the second sale resulted in a $25,600
was incorporated in 2018, and its tax records provide the following information:
2018 2019 2020 2021
Ordinary income $ 443,000 $ 509,700 $ 810,300 $ 921,
Net capital gain 22,000 0 4,120 13,
Taxable income $ 465,000 $ 509,700 $ 814,420 $ 934,
Required:
a.Compute Zeno’s tax refund from the carryback of its 2022 nondeductible capital
loss. Zeno’s marginal tax rate was 21 percent for each prior year.
b. Compute Zeno’s capital loss carryforward into 2023.
The capital loss comes back for preceding 3 previous year and carry over 5 succeeding years hence carry back losses will be from 19-21
Capital loss = $53000
Capital gain = $25600
Net loss = $27400
Net capital gain
2019=0 ; 2020 = 4120 ; 2021=13600
Carry back capital loss = 4120 + 13600 = 17720
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