Carrot Corporation,a C Corporation,has a Net Short-Term Capital Gain of $65,000

question 82

Multiple Choice

Carrot Corporation,a C corporation,has a net short-term capital gain of $65,000 and a net long-term capital loss of $250,000 during 2017.Carrot Corporation had taxable income from other sources of $720,000.Prior years' transactions included the following:
Compute the amount of Carrot's capital loss carryover to 2018.

• A)$0
• B)$32,000
• C)$45,000
• D)$185,000
• E)None of the above

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Definitions:

Colluding Oligopoly

A market situation where a small number of firms agree to manipulate market conditions, such as price or output, for mutual benefit.

Industry Profit

The total earnings before tax and interest of firms within a particular industry, after all expenses have been deducted from revenues.

Identical Cost Structures

Situations in which businesses have the same fixed and variable costs in their production processes.

Profit-maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by the point where marginal revenue equals marginal cost.