2. Zeb corporation has taxable income from operation of $1,000,000 for the current year a long-term...

Question

Question

2. Zeb corporation has taxable income from operation of $1,000,000 for the current year a long-term capital gain from the sal

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

a) Short Term Capital Loss of Securies can not be set off from long term capital gain of Real Estate.

Hence, Zob Corporation Taxable Income is

Profit from Business :- $1,000,000

Long Term Capital gain from Real Estate :- $300,000

b) Since Business loss can be set off from short Term Capital loss. Hence Business loss amounting to $250,000 can be set off from Short Term Capital Gain $ 275,000.

Hence, Zob Corporation Taxable Income is ($275,000 - $ 250,000) $25,000

Add a comment

Answer 2

Similar Homework Help Questions

2. Zeb corporation has taxable income from operation of $1,000,000 for the current year a long-term...

2. Zeb corporation has taxable income from operation of $1,000,000 for the current year a long-term capital gain from the sale of real estate of $300,000 and a short term capital loss of $450,000 from the sale of securities. Neither of the last two figures use included in arriving at the $1,000,000 taxable income from operations. a. What is Zeb corporation's taxable income for the year b. Instead of the figures used in the previous questions assume Zed had a...
Dallas Corporation, not a dealer in securities, realizes taxable income of $60,000 from the operation of...

Dallas Corporation, not a dealer in securities, realizes taxable income of $60,000 from the operation of its business. Additionally, in the same year, Dallas realizes a long-term capital loss of $10,000 from the sale of marketable securities. If the corporation realizes no other capital gains or losses, what is the proper treatment for the $10,000 long-term capital loss on the tax return? Carry the $10,000 long-term capital loss back three years as a short-term capital loss, then forward five years....
Houston Corporation (a “C” corporation), not a dealer in securities, realizes taxable income of $60,000 from...

Houston Corporation (a “C” corporation), not a dealer in securities, realizes taxable income of $60,000 from the operation of its business. Additionally, in the same year, Houston realizes a long-term capital loss of $10,000 from the sale of marketable securities. If the corporation realizes no other capital gains or losses, what is the proper treatment for the $10,000 long-term capital loss on the tax return? Group of answer choices Use $3,000 of the loss to reduce taxable income and carry...

Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000....

Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000. Included in the taxable income computation was a dividends received deduction of $5,000, a net capital loss carryover from 20x2 of $10,000 utilized in 20X3, and gain of $50,000 recognized on the collection of cash from an installment sale that took place in 20X1. The corporation's current E&P for 20X3 would be: Multiple Choice Ο $1,015,000. Ο $965,000. Ο $675,000. Ο $625,000.
Assume taxable income is the starting point for computing E & P. During 2010, Sagittarius Corporation...

Assume taxable income is the starting point for computing E & P. During 2010, Sagittarius Corporation had a capital loss of $60,000 and a capital gain of $30,000. The net capital loss of $30,000 could not be deducted in arriving at Sagittarius's taxable income for 2010. The $30,000 was carried over to 2011 and fully deducted in that year. The excess capital loss has no effect on Sagittarius Corporation's E&P in 2011. The excess capital loss reduces Sagittarius Corporation's E...
In the current year, Tanager Corporation (a calendar year C corporation) had operating income of $480,000...

In the current year, Tanager Corporation (a calendar year C corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Tanager had a long-term capital gain of $55,000 and a short-term capital loss of $40,000. a. Compute Tanager's taxable income and tax for the year. Taxable income: $___ Income tax: $___ b. Assume the same facts except that Tanager's long-term capital gain was $15,000. Compute Tanager's taxable income and tax for the year. Taxable income: $___ Income...

Rosie is head of household, has $47,000 of taxable income in 2018 from non-capital gain or...

Rosie is head of household, has $47,000 of taxable income in 2018 from non-capital gain or loss sources, and has the following capital gains and losses: 28% long term capital gain : $4,300 28% long term capital loss : ($2,000) 0% 15% 20% long term capital gain 19,000 Short term capital loss : ($1,700) Ignore standard deductions and exceptions. What is Rosie's taxable income and the tax on that taxable income?
exercise 16-06 in its first year of operations Sheridan corporation purchased as a long term investment...

exercise 16-06 in its first year of operations Sheridan corporation purchased as a long term investment available for sale debt securities costing $68,500. December 21,2020 the fair value of the securities is $ 63,650 We were unable to transcribe this imageList of Accounts CLOSE Brief Exercise 16-06 Debt Investments Dividend Revenue Fair Value Adjustment-Available-for-Sale Fair Value Adjustment-Stock Fair Value Adjustment-Trading Gain on Sale of Debt Investments Gain on Sale of Stock Investments Interest Receivable Interest Revenue Loss on Sale of...
Patti has the following capital gains and losses for the current year: Short-term capital gain $...

Patti has the following capital gains and losses for the current year: Short-term capital gain $ 1,000 Short-term capital loss 8,000 Long-term capital gain 5,000 Long-term capital gain 16,000 Long-term capital loss 3,000 What is the effect of the capital gains and losses on Patti's taxable income?

9. Rose Corporation (a calendar year taxpayer) has taxable income of $300,000, and its financial records...

9. Rose Corporation (a calendar year taxpayer) has taxable income of $300,000, and its financial records reflect the following for the year. Federal income taxes paid Net operating loss carryforward deducted currently Gain recognized this year on an installment sale from a prior year Depreciation deducted on tax return (ADS depreciation would have been $10,000) Interest income on lowa state bonds $110,000 70,000 44,000 40,000 8,000 Rose Corporation's current E & P is: a. $254,000 b. $214,000. c. $194,000. d....

2. Zeb corporation has taxable income from operation of $1,000,000 for the current year a long-term...

Homework Answers

Add Answer to:
2. Zeb corporation has taxable income from operation of $1,000,000 for the current year a long-term...

Post as a guest

Earn Coins