Corporation has the following data for the taxable year

Ordinary income

40,000

Ordinary loss

10,000

Capital gain on capital assets held for 6 months Capital gain on capital assets held for 3 years

40,000

Capital loss on capital assets held for 15 months

10,000

The taxable income of the corporation is:

To calculate the taxable income of the corporation, we need to consider both the ordinary income and
losses, as well as the capital gains and losses.

First, let’s calculate the net ordinary income. The corporation has an ordinary income of $40,000 and an
ordinary loss of $10,000. So, the net ordinary income is $40,000 - $10,000 = $30,000.

Next, let’s calculate the net capital gain. The corporation has a capital gain of $40,000 from assets held
for 6 months and 3 years. It also has a capital loss of $10,000 from assets held for 15 months. So, the net
capital gain is $40,000 - $10,000 = $30,000.
Therefore, the taxable income of the corporation would be the sum of the net ordinary income and the
net capital gain, which is $30,000 (net ordinary income) + $30,000 (net capital gain) = $60,000.