Determine the tax savings of long-term capital loss

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Question 1: Assume that Gorilla Corporation's capital loss carryforward in part (c) is $27,000 and that Gorilla will be able to use $11,000 of the carryover to offset capital gains in 2020 and the remaining $16,000 to offset capital gains in 2021. Determine the tax savings of the $105,000 long-term capital loss recognized in 2019.

Assume a discount rate of 5%. The present value factors at 5% are as follows: 1.000 for 2016-2019; 0.9524 for 2020 and 0.9070 for 2021. Gorilla Corporation's marginal income tax rate is 34% for all tax years prior to 2018.

Round your computations to the nearest dollar.In present value terms, the tax savings of the $105,000 long-term capital loss recognized in 2019 is $

Reference no: EM132480437

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