Roland,Shedrick,and Tyrone Corporations Formed an Affiliated Group a Number of Years

question 17

Multiple Choice

Roland,Shedrick,and Tyrone Corporations formed an affiliated group a number of years ago,which has since filed consolidated tax returns.No prior Sec 1231 losses have been reported by any group member.The group had a consolidated capital loss carryover last year.For the current year,the group reports the following results: Which of following statements is incorrect?

• A)No Sec.1231 recapture can occur this year.
• B)The net capital gain is taxed at the regular corporate tax rates.
• C)The Sec.1231 loss is treated as an ordinary loss.
• D)The net capital gain is $20,000.

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Definitions:

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a variety of topics, activities, or events, often disproportionate to the actual source of worry.

Conditions Of Worth

According to client-centered theorists, the internal standards by which a person judges his or her own lovability and acceptability, determined by the standards to which the person was held as a child.

Personal Standards

Individual beliefs about the level of excellence or performance that one should achieve to be satisfied with oneself.

Physiological Arousal

Physical responses of the body to emotional stimuli, such as increased heart rate, sweating, or rapid breathing.