A Corporation Has the Following Capital Gains and Losses During

question 24

Multiple Choice

A corporation has the following capital gains and losses during the current year: The tax result to the corporation is

• A)deduct $3,000 of the STCL currently; carryover the remaining $2,000 STCL and $6,000 LTCL.
• B)deduct $5,000 STCL and $6,000 LTCL.
• C)deduct nothing currently; carryback the $5,000 STCL and $6,000 LTCL for three years and carryover for 5 years, if necessary.
• D)deduct nothing currently; carryback the $11,000 STCL for three years and carryover for 5 years, if necessary.

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Definitions:

Membrane

A thin layer of tissue or material that acts as a selective barrier, controlling the passage of substances in and out of cells or organelles.

Fontanels

Soft spots on a baby's skull where the bones have not yet fused, allowing for growth of the brain and skull during infancy.

Ossified

The process by which tissue is transformed into bone or a bony substance.

Epiphyseal Plates

Growth plates located at the ends of long bones where new bone growth occurs.