In 2012, the First Year of Its Existence, Chartreuse Corporation

question 19

Multiple Choice

In 2012, the first year of its existence, Chartreuse Corporation had a net capital loss of $3,000. In 2013 and 2014, it had net capital gains of $5,000 and $8,000, respectively. In 2015, the company reported a net capital loss of $12,000. What is the amount of capital loss carryforward to 2016?

• A) $0.
• B) ($1,000).
• C) ($2,000).
• D)($4,000).

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Definitions:

Chemical Plant

An industrial facility where chemical processes are carried out, especially the manufacture of chemicals or pharmaceuticals.

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A legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from personal liability for the corporation's debts and obligations.

Burwell v. Hobby Lobby

A landmark U.S. Supreme Court case that allowed closely held for-profit corporations to be exempt from regulations its owners religiously object to, if there is a less restrictive means of furthering the law's interest.

Supreme Court

The highest federal court in the United States, responsible for interpreting the Constitution and reviewing cases of national significance.