
Answer:
Amount carried forward = $7000
Explanation:
Given:
net capital loss of $12,000
ordinary income of $10,000
had net capital gains of $5,000
Net capital loss carried forward= ?
Computation of net capital loss carried forward:
Net capital loss carried forward= $12,000 - $5,000
Net capital loss carried forward= $7,000
Note: $2,500 not carried forward