Sensor Corporation Was Formed and Began Operations in 2011

question 46

Multiple Choice

Sensor Corporation was formed and began operations in 2011.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 2012,the corporation had $5,000 of net long-term capital losses,and in 2013 the corporation had $20,000 of net long-term capital losses.How much capital loss is available to carry forward to 2014?

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

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Definitions:

Direct Materials Purchased

This involves the acquisition of raw materials that are directly used in the manufacturing of a product, constituting a significant portion of the production cost.

Accounts Receivable

Amounts due to a firm from its customers for delivered services or products that remain unpaid.

Factory Overhead

Refers to the indirect manufacturing costs that are not directly tied to the production of goods, such as utilities, maintenance, and rent of the factory building.

Direct Labor Costs

Expenses related to the wages of employees who are directly involved in the production of goods or delivery of services.