Chapter 20, Problem 23CE

LO.3 Green Corporation, a calendar year taxpayer, has ordinary income of $10,000 and a long-term capital loss of $12,000 in 2019. Green incurred a long-term capital gain of $2,500 in 2016 and a long-term capital gain of $5,000 in 2018.

1. a. How much of the long-term capital loss can be deducted in 2019?
2. b. Carried back to prior years?
3. c. Carried forward to future years?
4. d. What is the nature (long- or short-term) of any carrybacks or carryforwards?