Ostrich Corporation Has Net Short-Term Capital Gains of $50,000 and Net

question 8

Essay

Ostrich Corporation has net short-term capital gains of $50,000 and net long-term capital losses of $280,000 during 2008.Ostrich had taxable income from other sources of $1 million.Prior years' transactions included the following:

a.How are the capital gains and losses treated on Ostrich's 2008 tax return?
b.Determine the amount of the 2008 capital loss that is carried back to each of the previous years.
c.Compute the amount of capital loss carryover, if any, and indicate the years to which the loss may be carried.
d.If Ostrich were a proprietorship, how would Ellen, the owner, report these transactions on her 2008 tax return?