Concept regarding sole shareholder

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Ted is the sole shareholder of a C corporation, and Sue owns a sole proprietorship. Both businessed were started in 2010, and each business sustained a $5,000 net capital loss for the year. Which of the following statements is correct?

a. Ted's corporation can deduct the $5,000 capital loss in 2010.

b. Ted's corporation can deduct $3,000 of the capital loss in 2010.

c. Sue can caryy the capital loss back three years and forward five years.

d. Sue can deduct the $5,000 capital loss against ordinary income in 2010.

e. none of the above

Reference no: EM13135794

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