Tatoo Incorporated Reported a Net Capital Loss of $14,900 in 2020

question 34

Multiple Choice

Tatoo Incorporated reported a net capital loss of $14,900 in 2020. The company had a net capital gain of $6,200 in 2018 and $4,900 in 2017. In 2019, although the company suffered a net operating loss, it had net capital gains of $2,900. What is the amount of Tatoo's capital loss carryover to 2021 remaining after it applies the carryback?

• A) $900.
• B) $3,800.
• C) $8,700.
• D) $14,900.

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Definitions:

Non-directional

Pertaining to hypothesis testing, a hypothesis that does not predict the direction of the difference or relationship but merely asserts that a difference or relationship exists.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, asserting that there is a statistically significant relationship between variables.

Non-directional

Refers to a type of hypothesis that does not predict the direction of the difference or relationship between variables.

Alternative Hypothesis

In hypothesis testing, the hypothesis that contradicts the null hypothesis, suggesting some effect or difference exists.