Global Corporation reports the following results for the current year:

Gross profits on sales	$142,000
Long-term capital gain	4,000
Long-term capital loss	10,000
Short-term capital gain	9,000
Short-term capital loss	2,000
Operating expenses	63,000

What are Global's taxable income and income tax liability for the current year?

Begin by computing Global's taxable income. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)

Gross profit on sales		$142,000
Net capital gain		1,000
Gross income		143,000
Minus:	Operating expenses	(63,000)
Taxable income		$80,000

Now, compute Global's income tax liability.

Global's income tax liability =

$16,800

Requirement b. How would your answers to Part a change if

Global's short-term capital loss is $12,000 instead of $2,000?

Begin by computing Global's taxable income. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)

Gross profit on sales		142,000
Gross income		142,000
Minus:	Operating expenses	(63,000)
Taxable income		$79,000

Now, compute Global's income tax liability.

Global's income tax liability =

$16,590

What carrybacks and/or carryovers are available to other tax years? (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)

Type of carryback/carryover

Amount

Answer rating: 100% (QA)

Global would have a longterm capital gain of 120000 There are no carryba... View the full answer