I have included the answer to my question below. Please kindly explain why the long-term capital loss is not included in the taxable income calculation as well as the capital loss carryover from the previous year. Thank you in advance.

Facts:

Greco Glass Products ("GGP") is a C Corporation.

GGP had gross revenue from sales in 2017 of $2,300,000.

GGPs cost of goods sold for the 2017 sales was $952,000.

GGP incurred a long-term capital loss in the amount of $48,000.

GGP had a capital loss carryover from 2016 of $15,000.

GGP made cash charitable contributions totaling $135,000.

GGP made contributions to Ronald Stumps presidential campaign in the amount of $50,000. ---------------------------------------------------------------------------------------------------------

Question: 1. What is GGPs taxable income for 2017? Show your work. (35 points)

Gross receipts or sales $2,300,000

Cost of goods sold ($952,000)

Gross Profit $1,348,000

Charitable contributions ($134,800)

Taxable Income = $1,213,200