Billingsworth Corporation has the following net capital gains and losses for 2018 through 2021. Billingsworth'...
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Billingsworth Corporation has the following net capital gains and losses for 2018 through 2021. Billingsworth' marginal tax rate is 21% for 2018 through 2021.
| 2018 | 2019 | 2020 | 2021 |
| $8,000 | $3,000 | $6,500 | $(9,000) |
In 2021, Billingsworth Corporation earned a net operating income of $30,000. What is/are the tax effect(s) of the $9,000 net capital loss in 2021?
| I. | Corporate taxable income is $21,000. |
| II. | The net capital loss will provide income tax refunds of $1,890. |
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