Sensor Corporation Was Formed and Began Operations in 2011

question 46

Multiple Choice

Sensor Corporation was formed and began operations in 2011.For that year,it had operating income of $50,000,long-term capital gains of $25,000 and short-term capital losses of $10,000.In 2012,the corporation had $5,000 of net long-term capital losses,and in 2013 the corporation had $20,000 of net long-term capital losses.How much capital loss is available to carry forward to 2014?

• A)$ - 0 -
• B)$10,000
• C)$15,000
• D)$20,000
• E)$25,000

---

Definitions:

Accounts Payable

Liabilities of a company that represent amounts owed to creditors for goods and services received but not yet paid for.

Journal Entry

A record in the books of account that represents a financial transaction.

Payroll Taxes Expense

Taxes that employers are required to pay based on the wages and salaries of their employees, such as Social Security and Medicare taxes.

FICA Tax

A U.S. federal payroll tax used to fund Social Security and Medicare, distributed between employees and employers.