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:

Variable Overhead

Indirect production costs that vary with the level of output, such as utilities for a manufacturing plant.

Direct Materials

Raw materials that can be directly attributed to the production of finished goods.

Direct Labor-Hours

Total working hours accrued by employees integral to the manufacturing sequence.

Variable Overhead

Costs of production that vary directly with the volume of output, such as utilities and labor efficiency.