During 2011, Gorilla Corporation has net short-term capital gains of $70,000, net long-term capital losses of $195,000, and taxable income from other sources of $620,000. Prior years' transactions included the following:
- 2007 net short-term capital gains 30000
- 2008 net long-term capital gains 55000
- 2009 net short-term capital gains 15000
- 2010 net long-term capital gains 40000
a. How are the capital gains and losses treated on Gorilla's 2011 tax return?
b. Determine the amount of the 2011 capital loss that is carried back to each of the previous years.
c. Compute the amount of capital loss carryover, if any, and indicate the years to which the loss may be carried.
d. If Gorilla is a sole proprietorship, rather than a corporation, how would the owner report these transactions on her 2011 tax return?