Assume that Gorilla Corporation's capital loss carryforward in part (c) is $27,000 and that Gorilla will be
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Assume that Gorilla Corporation's capital loss carryforward in part (c) is $27,000 and that Gorilla will be able to use $11,000 of the carryover to offset capital gains in 2019 and the remaining $16,000 to offset capital gains in 2020.
Assume the following:
- A discount rate of 5%.
- Present value factors - 1.000 for 2015-2018; 0.9524 for 2019 and 0.9070 for 2020.
- Gorilla Corporation's marginal income tax rate is 34% for all tax years prior to 2018.
- Round your computations to the nearest dollar.
In present value terms, determine the tax savings of the $105,000 long-term capital loss recognized in 2018.
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