Consolidated Capital Gains. P, S, and T file a consolidated return for 2015 and 2016. During 2016, the group had the following transactions:
S sold to T land for $35,000 (basis of $12,000)
P sold equipment to its president, Individual X, who owns 40% of P’s stock, for $11,000 (basis of $20,000). The remainder of P’s stock is owned by X’s brother.
T sold depreciation equipment for $22,000 which it purchased from P in 2014 for $20,000. The equipment was being depreciated over a five – year period using MACRS.
The is a capital loss carryover from 2015 of $13,000
Determine the consolidated net capital gain or loss for the year.