In 2010, the Ryan Corporation sold a capital asset and incurred a $40,000 LTCL that was carried forward to subsequent years. That sale was the only sale of a capital asset that Ryan made until 2015, when Ryan sells a capital asset and recognizes a STCG of $53,000. Without considering the STCG from the sale, Ryan’s taxable income is $250,000.
a. Determine the corporation’s NSTCG for 2015.
b. Determine the corporation’s 2015 taxable income.
c. If the sale of the asset in 2010 had occurred in 2009, determine the corporation’s 2015 taxable income.