Question: This is the whole question. I got a - d correct. During 2017, Bando Corporation has net short-term capital gains of $18,000, net long-term capital

This is the whole question. I got a - d correct.

During 2017, Bando Corporation has net short-term capital gains of $18,000, net long-term capital losses of $35,000, and taxable income from other sources of $120,000. Prior years' transactions included the following.

2013 net short-term capital gains	$1,000
2014 net long-term capital gains	4,000
2015 net short-term capital gains	2,000
2016 net long-term capital gains	1,500

If an amount is zero, enter "0".

a. How much is Bando's net capital loss for 2017? $17,000

ii. . What is the amount of the capital loss deduction on Bando's 2017 tax return?

iii. Any excess net capital loss is carried back or forward as a short-term capital loss .

Capital gains and losses result from the taxable sales or exchanges of capital assets. Whether these gains and losses are long-term or short-term depends upon the holding period of the assets sold or exchanged. Each year, a taxpayer's short-term gains and losses are combined, and long-term gains and losses are combined. The result is a net short-term capital gain or loss and a net long-term capital gain or loss.

b. Of the excess 2017 net capital loss, how much is carried back to the previous years? $ 7,500

c. Compute the amount of capital loss carryover to 2018 and future years. $9,500

Indicate the years to which the loss may be carried. Select "Yes" or "No", which ever is appropriate.

2018	Yes
2019	Yes
2020	Yes
2021	Yes
2022	Yes

d. If Bando is a sole proprietorship, rather than a corporation, how would the owner report these transactions on the taxpayer's 2017 tax return?

Bando offsets $18,000 of capital gains against capital losses and deducts an additional $ 3,000 in capital losses . The remaining $14,000 is carried forward indefinitely .

e. Assume that Bando Corporations capital loss carryforward in part (c) is $9,500, and that Bando will be able to use $4,000 of the carryover to offset capital gains in 2018 and the remaining $5,500 to offset capital gains in 2019.

Assume the following:

A discount rate of 5%.

Present value factors - 1.000 for 2014-2016; 0.952 for 2018 and 0.907 for 2019.

Bando Corporations marginal income tax rate is 34% for all tax years.

Round your computations to the nearest dollar.

In present value terms, determine the tax savings of the $35,000 long-term capital loss recognized in 2017. $___________