Dorsett Corporation’s income tax return for 2007 shows deductions exceeding gross income by $56,800. Included in the tax return are the following items:

Net operating loss deduction (carryover from 2006)

$15,000

Dividends received deduction

6,800

What is Dorsett’s net operating loss for 2007?

  1. $56,800
  2. $50,000
  3. $41,800
  4. $35,000