Virginia owns 100% of Goshawk Company. In the current year, Goshawk Company sells a capital asset (held for three years) at a loss of $40,000. In addition, Goshawk has a short-term capital gain of $18,000 and net operating income of $90,000 during the year. Virginia has no recognized capital gain (or loss) before considering her ownership in Goshawk. How much of the capital loss may be deducted for the year, and how much is carried back or forward if Goshawk is (a) a proprietorship and (b) a C corporation? a. If Goshawk is a proprietorship, $ long-term capital loss can be deducted in the current year. The remaining net capital loss is carried and b. If Goshawk is a C corporation, $ long-term capital loss can be deducted in the current year. The remaining net capital loss is carried and
Virginia owns 100% of Goshawk Company. In the current year, Goshawk Company sells a capital asset (held for three years) at a loss of $40,000. In addition, Goshawk has a short-term capital gain of $18,000 and net operating income of $90,000 during the year. Virginia has no recognized capital gain (or loss) before considering her ownership in Goshawk. How much of the capital loss may be deducted for the year, and how much is carried back or forward if Goshawk is (a) a proprietorship and (b) a C corporation? a. If Goshawk is a proprietorship, $ long-term capital loss can be deducted in the current year. The remaining net capital loss is carried and b. If Goshawk is a C corporation, $ long-term capital loss can be deducted in the current year. The remaining net capital loss is carried and
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fill in The Blanks. (See attached Image).
Transcribed Image Text:Virginia owns 100% of Goshawk Company. In the current year, Goshawk Company sells a capital asset (held for three years) at a loss of
$40,000. In addition, Goshawk has a short-term capital gain of $18,000 and net operating income of $90,000 during the year. Virginia has
no recognized capital gain (or loss) before considering her ownership in Goshawk.
How much of the capital loss may be deducted for the year, and how much is carried back or forward if Goshawk is (a) a proprietorship and
(b) a C corporation?
a. If Goshawk is a proprietorship, $
long-term capital loss can be deducted in the current year. The remaining
net capital loss is carried
and
b. If Goshawk is a C corporation, $
long-term capital loss can be deducted in the current year. The remaining
net capital loss is carried
and
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