Question

Koil Corporation generated $750,800 ordinary income from the sale of inventory to its customers. It also sold three noninventory assets during the year. Required: Compute Koil’s taxable income assuming that the first sale resulted in a $82,400 capital gain, the second sale resulted in a $21,100 capital loss, and the third sale resulted in a $24,300 capital loss. Compute Koil’s taxable income assuming that the first sale resulted in a $24,800 ordinary gain, the second sale resulted in a $45,000 capital gain, and the third sale resulted in a $90,800 capital loss. Compute Koil’s taxable income assuming that the first sale resulted in a $18,700 capital gain, the second sale resulted in a $24,300 capital loss, and the third sale resulted in an $11,650 ordinary loss.

Answer 1

non deductible this year. Solution - = Kol's taxable Income = ordinary Income + capital gain capital losses 750800+ 8 2 400-(21100+ 24300 = 833200 -45UOD = $787800 B) Koills taxable Income = ordinary Inome toodinary gain t capital gain- allowable capital losses. 750800+ 24900 + 45000 - 45000 - 150 800 +24800 $775600 The & 45800 capital loss is excess of capital gain is non deductible this year.. C) koil's taxable Income a ordinary income t capital gain - Capital losses ordinasyloss 750800+ 18700- 18700 - 11650 - $739150 The 5600 capital loss is excess of capital gain is -