In 2012, 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 2017, when Ryan sells a capital asset and recognizes an 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 2017.
b. Determine the corporation’s 2017 taxable income.
c. If the sale of the asset in 2012 had occurred in 2011, determine the corporation’s 2017 taxable income.