Zeno Inc. sold two capital assets in 2019. The first sale
resulted in a $53,000 capital loss, and the second sale resulted in
a $25,600 capital gain. Zeno was incorporated in 2015, and its tax
records provide the following information:
2015 | 2016 | 2017 | 2018 | |||||
Ordinary income | $443,000 | $509,700 | $810,300 | $921,000 | ||||
Net capital gain | 22,000 | 0 | 4,120 | 13,600 | ||||
Taxable income | $465,000 | $509,700 | $814,420 | $934,600 | ||||
The capital loss carry back for preceding 3 pevious year and carry over 5 succeding year
Carry back of losses will be from 2015-2017
Capital gain $25600
Capital loss $53000
Net capital loss (27400)
2016 | 2017 | 2018 | total losses carry back | |
---|---|---|---|---|
Net capital gain | 0 | 4120 | 13600 | |
Carry back capital losses | 4120 | 13600 | 17720 |
a) Computation of Zeno tax refund as 34%
34% tax refund of $ 17,720
= 6024.8
Rouded off = 6025
b)Computation zeno’s capital loss carryforward into 2020.
=(53000 - 25600) - 17720
Capital loss carry forward = 27400 - 17720
= $9,680
Zeno Inc. sold two capital assets in 2019. The first sale resulted in a $53,000 capital...
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