On January 1, 2021, Carla Vista Co. has the following balances:
1 answer:
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Answer:
$ 6,600
Explanation:
Monty should e up to
in the gross account but to an extent of the tax benefit in the previous year. Since the debt is a non-business debt, the amount of
would be reported as the short term business capital loss.
In the previous year, Monty had a capital gain of and
as taxable income.
Therefore, $ 3,600 + $ 3,000 = $ 6,600
So $ 6,600 out of $ 9,000 loss produced the tax benefit. Therefore, only can be included in the gross income of Monty for this year.