Ostrich,a C Corporation,has a Net Short-Term Capital Gain of $20,000

question 23

Essay

Ostrich,a C corporation,has a net short-term capital gain of $20,000 and a net long-term capital loss of $90,000 during 2017.Ostrich also has taxable income from other sources of $1 million.Prior years' transactions included the following:
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a.How are the capital gains and losses treated on Ostrich's 2017 tax return?
b.​Determine the amount of the 2017 net 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 2017 tax return?

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Definitions:

Acceptance Sampling

A statistical quality control method used to decide whether to accept or reject a lot of products by inspecting a random sample rather than the entire batch.

Capable

The quality of being able to achieve a specified task or outcome efficiently and effectively.

Consumer's Risk

The probability of accepting a defective product or service because the inspection or test fails to detect the flaw.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about the characteristics of a population.