Pure Action Cycles Inc

question 89

Essay

Pure Action Cycles Inc., a bicycle manufacturer, has a net capital loss in 2016 of $64,000. It had net capital gains of $21,500 in 2015, $45,000 in 2014, $0 in 2013 (but suffered a net operating loss in 2013), and $8,000 of net capital gain in 2012. What is the net capital gain in 2015 after the carryback is applied?

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Definitions:

Average Cost Curve

A graph that illustrates the cost per unit of output by dividing the total cost by the quantity of output produced, typically showing how costs fluctuate with changes in scale.

Marginal Cost Curve

A graph that shows the increase in cost incurred by producing one more unit of a good or service.

U-Shaped

Characterizes graphs or functions that have a visible dip in the middle, creating a shape similar to the letter "U," often found in economic analyses representing cost curves.

Cost Function

A mathematical description of how production costs vary with changes in the quantity of output produced.