Question

Barton, Inc. is a corporation with ordinary net business income of $130,000, dividends of $2,000, a long-term capital gain of $5,000 and a short-term capital loss of $10,000. What is Barton's taxable income based on these figures?

Answer 1

Business net income $130,000
Dividends $2,000
Long-term capital gain $5,000
Short-term capital loss $10,000
$130,000 + $2,000 + $5,000 = $137,000
$137,000 - $10,000 = $127,000

Based on my these figures, Barton’s taxable income is $127,000.