Which of the Following Statements Regarding Capital Gains and Losses

question 106

Multiple Choice

Which of the following statements regarding capital gains and losses is false?

• A)In terms of tax treatment, corporations generally prefer capital gains to ordinary income.
• B)Like individuals, corporations can deduct $3,000 of net capital losses against ordinary income in a given year.
• C)Corporations can carry back net capital losses three years and they can carry them forward for five years.
• D)Corporations must apply capital loss carrybacks and carryovers in a particular order.

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Definitions:

Temperamentally Inhibited

A trait characterized by a tendency to react with fear or withdrawal in new situations or environments.

Amygdala

An almond-shaped, temporal lobe structure that plays a central role in emotion and evaluating stimuli.

Interaction Between Person

Involves communication and exchange of ideas, feelings, or behaviors between two or more individuals.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often accompanied by physical symptoms.