Reference no: EM132993248

During 2017, Gorilla Corporation has net short-term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years' transactions included the following:

2013 net short-term capital gains $40,000
2014 net long-term capital gains 18,000
2015 net short-term capital gains 25,000
2016 net long-term capital gains 20,000

Problem a. How are the capital gains and losses treated on Gorilla's 2017 tax return?

Problem b. Determine the amount of the 2017 capital loss that is carried back to each of the previous years.

Problem c. Compute the amount of capital loss carryforward, if any, and indicate the years to which the loss may be carried.

Problem d. If Gorilla is a sole proprietorship, rather than a corporation, how would the owner report these transactions on her 2017 tax return?