Carrot Corporation, a C Corporation, Has a Net Short-Term Capital

question 3

Multiple Choice

Carrot Corporation, a C corporation, has a net short-term capital gain of $65,000 and a net long-term capital loss of $250,000 during 2016. Carrot Corporation had taxable income from other sources of $720,000. Prior years' transactions included the following: $$\begin{array} { l l r } 2012 & \text { Net long-erm capital gain } & \$ 150,000 \\2013 & \text { Net short-term capital gain } & 60,000 \\2014 & \text { Net short-term capital gain } & 45,000 \\2015 & \text { Net long-erm capital gain } & 35,000\end{array}$$ Compute the amount of Carrot's capital loss carryover to 2017.

• A)$0
• B)$32,000
• C)$45,000
• D)$185,000
• E)None of the above

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Definitions:

Conversion

The process of changing or converting something from one state or form to another.

Dissociation

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Allostatic Stress Load

The cumulative burden of chronic stress and life events that can affect an individual's physiological functioning over time.

Anaphylactic Shock

A severe, potentially life-threatening allergic reaction that can occur rapidly, leading to symptoms such as difficulty breathing, swelling, and drop in blood pressure.