Bear Corporation Has a Net Short-Term Capital Gain of $35,000

question 55

Multiple Choice

Bear Corporation has a net short-term capital gain of $35,000 and a net long-term capital loss of $200,000 during 2012.Bear Corporation has taxable income from other sources of $600,000.Prior years' transactions included the following: Compute the amount of Bear's capital loss carryover to 2013.

• A)$0.
• B)$60,000.
• C)$105,000.
• D)$165,000.
• E)$200,000.

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture; includes market risk, credit risk, liquidity risk, and operational risk, among others.

Shareholders

Individuals or entities that own shares in a corporation, granting them rights to dividends and a say in company affairs proportional to their shareholding.

ROCE

Return on Capital Employed, a financial metric that measures a company's profitability and the efficiency with which its capital is employed.

After-Tax Cost

The expense of an action or investment after accounting for the effects of taxes.