Henritta Is the Sole Shareholder of Quaker Corporation

Multiple Choice

Henritta is the sole shareholder of Quaker Corporation. Quaker's income from operations for the current year is $600,000. Included in the $600,000 amount are dividends of $10,000 from the stock of a 4%-owned corporation. Also included in the $600,000 is a $4,000 long-term loss realized on the sale of a stock investment in an unaffiliated corporation. To compute taxable income for the current year, Henritta should deduct a capital loss of

A) $- 0 -
B) $4,000
C) $3,000
D) $2,000
E) $1,000