Susco had the following items this year:   Gross receipts $700,000 Operating expenses 500,000 Long-term capital gain 40,000 Long-term capital loss (20,000) Short-term capital gain 16,000 Short-term capital loss (44,000)   What is Susco’s taxable income and does it have any carrybacks/carryovers?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2)         Susco had the following items this year:

 

Gross receipts

$700,000

Operating expenses

500,000

Long-term capital gain

40,000

Long-term capital loss

(20,000)

Short-term capital gain

16,000

Short-term capital loss

(44,000)

 

What is Susco’s taxable income and does it have any carrybacks/carryovers?

Expert Solution
Step 1

Long term capital losses of the business can only be set off against long term capital gains. But short term capital losses can be set off against short term capital gains and as well as long term capital gains 

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