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:

Parasympathetic Nervous System

A component of the autonomic nervous system that plays a crucial role in energy conservation and reducing the heart rate, among various other tasks.

Somatic

Pertaining to the body, particularly as distinct from the mind or psyche, often used in the context of bodily symptoms or sensations.

Sympathetic

Part of the autonomic nervous system involved in the body's fight or flight response, preparing the body for rapid action in response to a threat.

Sympathetic Nervous System

A part of the autonomic nervous system that activates the 'fight or flight' response, increasing heart rate, dilating pupils, and preparing the body for action.