Evans Corporation Has a $15,000 Net Capital Loss in 2011

question 27

Multiple Choice

Evans Corporation has a $15,000 net capital loss in 2011. The corporation reported the following capital gain net income during the past three years. Identify which of the following statements is true.

• A) The loss is used to offset the gains from 2010 and then carried back to offset $10,000 of the gains in 2008.
• B) The loss is used to offset the $11,000 of the 2009 gains and then carried back to offset $4,000 of the year 2008 net gain.
• C) The loss is used to offset $3,000 of the current year ordinary income, all of the year 2008 capital gains, and $7,000 of the year 2009 net gain.
• D) The loss is used to offset the year 2008 net gains, then $5,000 of the year 2009 net gains.

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Definitions:

Medications

Substances used to diagnose, treat, cure, or prevent diseases and relieve symptoms in humans or animals.

Dinner

A main meal of the day, typically eaten in the evening.

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A period of sleep composed of multiple stages, including REM and non-REM stages, that repeats several times throughout a night's sleep.

NREM Stage

Non-Rapid Eye Movement sleep stage, which consists of three stages of sleep that precede REM sleep, characterized by slower brainwaves and physical relaxation.