Evans Corporation Has a $15,000 Net Capital Loss in 2017

question 73

Multiple Choice

Evans Corporation has a $15,000 net capital loss in 2017. The corporation reported the following capital gain netting in income during the past three years. Identify which of the following statements is true.

• A)The loss is used to offset the gains from 2016 and then carried back to offset $10,000 of the gains in 2014.
• B)The loss is used to offset the $11,000 of the 2015 gains and then carried back to offset $4,000 of the year 2014 net gain.
• C)The loss is used to offset $3,000 of 2014, 2015 and 2016 capital gains, remaining amount carried forward at $3,000 a year until expired.
• D)The loss is used to offset the year 2014 net gains, then $5,000 of the year 2015 net gains.

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Definitions:

Serious Crime

A criminal offense considered severe due to its nature, often involving significant harm to individuals or society and carrying heavy penalties.

Noncompetition Clause

A provision in a contract that prohibits an individual from competing with their former employer for a certain period after leaving the company.

Unduly Burdensome

Imposing an excessive load, effort, or demand, considered unreasonable under the circumstances.

Illegal Contract

A contract that is void and unenforceable from the outset because it involves or pertains to an illegal act.