Sensor Corporation Was Formed and Began Operations in 2014

question 57

Multiple Choice

Sensor Corporation was formed and began operations in 2014.For that year,it had operating income of $50,000,long-term capital gains of $25,000 and short-term capital losses of $10,000.In 2015,the corporation had $5,000 of net long-term capital losses,and in 2016 the corporation had $20,000 of net long-term capital losses.How much capital loss is available to carry forward to 2017?

• A)$- 0 -
• B)$10,000
• C)$15,000
• D)$20,000
• E)$25,000

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Definitions:

Output Quantity

The amount of goods or services produced by a company, industry, or economy within a specific period.

MR = MC Rule

The principle that a firm will maximize its profit (or minimize its losses) by producing the output at which marginal revenue and marginal cost are equal, provided product price is equal to or greater than average variable cost.

Pure Competition

Refers to a market structure where many sellers offer homogeneous products, and no single seller can influence the market price.