Tatoo IncReported a Net Capital Loss of $13,000 in 2017

question 58

Multiple Choice

Tatoo Inc.reported a net capital loss of $13,000 in 2017.It had a net capital gain of $4,300 in 2015 and $3,000 in 2014.In 2016,although the company suffered a net operating loss,it had net capital gains of $1,000.What is the amount of Tatoo's capital loss carryover remaining after it applies the carryback?

• A) $4,700.
• B) $5,700.
• C) $8,700.
• D) $13,000.

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Definitions:

Consumer's Income

The total amount of income available to an individual or household for spending on goods and services.

Expected-Rate-of-Return Curve

A graphical representation showing the expected returns of an investment as a function of varying degrees of risk.

Interest-Rate Cost-of-Funds Curve

A graphical representation depicting the relationship between the cost of funding for lending institutions and different interest rates.

Optimal R&D Expenditures

The most efficient level of spending on research and development activities that maximizes the benefits or returns from innovation.