Ask Question
9 November, 04:55

In 2019 Hill Corporation reported a net operating loss of $10,300 that it carried forward to 2020. In 2019 Hill also reported a net capital loss of $4,200 that it carried forward to 2020. In 2020, ignoring any carryovers from other years, Hill reported a loss for tax purposes of $58,500. The current-year loss includes a $12,700 net capital gain. What is Hill's 2020 net operating loss?

+4
Answers (1)
  1. 9 November, 07:21
    0
    Hill's 2020 net operating loss is $62,700

    Explanation:

    The computation of the net operating loss is shown below:

    = Tax purpose loss + net capital gain - difference of net capital loss and net capital gain

    = $58,500 + 12,700 - $8,500

    = $62,700

    The difference between net capital gain and net capital loss is shown below:

    = $12,700 - $4,200

    = $8,500

    For computing the net operating loss, we add the net capital gain and deduct the difference to the tax purpose losses
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In 2019 Hill Corporation reported a net operating loss of $10,300 that it carried forward to 2020. In 2019 Hill also reported a net capital ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers