Step-by-step explanation:
To determine the correct statement, let's analyze the given information:
Net income from operations = $100,000
Long-term capital gain = $30,000
Short-term capital loss = $45,000
To calculate the taxable income and the net capital loss, we need to combine the net income from operations and the net capital gains/losses.
1. Net capital gain/loss:
Net capital gain/loss = Long-term capital gain - Short-term capital loss
Net capital gain/loss = $30,000 - $45,000 = -$15,000 (a net capital loss of $15,000)
2. Taxable income:
Taxable income = Net income from operations + Net capital gain/loss
Taxable income = $100,000 + (-$15,000) = $85,000
So, the correct statement is:
b. Bluebird Corporation will have taxable income in 2021 of $85,000.
The taxable income is $85,000, and the net capital loss is $15,000.