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Carrot Corporation, a C Corporation, Has a Net Short-Term Capital

Question 126

Multiple Choice

Carrot Corporation, a C corporation, has a net short-term capital gain of $65,000 and a net long-term capital loss of $250,000 during 2019. Carrot Corporation had taxable income from other sources of $720,000. Prior years'
Transactions included the following: 2015 Net long-term capital gain $150,0002016 Net short-term capital gain 60,0002017 Net short-term capital gain 45,0002018 Net long-term capital gain 35,000\begin{array} { l l r } 2015 & \text { Net long-term capital gain } & \$ 150,000 \\2016 & \text { Net short-term capital gain } & 60,000 \\2017 & \text { Net short-term capital gain } & 45,000 \\2018 & \text { Net long-term capital gain } & 35,000\end{array} Compute the amount of Carrot's capital loss carryover to 2020.


A) $0
B) $32,000
C) $45,000
D) $185,000
E) None of these.

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