Ostrich, a C Corporation, Has a Net Short-Term Capital Gain

question 53

Essay

Ostrich, a C corporation, has a net short-term capital gain of $20,000 and a net long-term capital loss of $90,000 during 2014. Ostrich also has taxable income from other sources of $1 million. Prior years' transactions included the following:
$\begin{array}{llr} \text { 2010 net short-term capital gains } &\$20,000\\ \text {2011 net long-term capital gains } &15,000\\ \text { 2012 net short-term capital gains } &25,000\\ \text { 2013 net long-term capital gains } &5,000\\\end{array}$

a. How are the capital gains and losses treated on Ostrich's 2014 tax return?
b. Determine the amount of the 2014 net capital loss that is carried back to each of the previous years.
c. Compute the amount of capital loss carryover, if any, and indicate the years to which the loss may be carried.
d. If Ostrich were a proprietorship, how would Ellen, the owner, report these transactions on her 2014 tax return?

Identify appropriate methods for checking assumptions of t procedures.

Recognize nonparametric procedures and their applicability.

Apply the one-sample t statistic to normally distributed populations.

Analyze data sets for normality and presence of outliers.

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Definitions:

Credit Sales

Sales transactions where the customer is allowed to pay at a later date, extending credit rather than requiring payment upfront.

Budgeted Accounts Receivable

The projected amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Collections

Refers to the process or activity of gathering or receiving payments from customers, typically relating to accounts receivable.

Cash Budget

A budget that estimates cash inflows and outflows over a specific period, used to assess whether a company has sufficient cash to meet its obligations.