Studios Reported a Net Capital Loss of $30,000 in Year

question 82

Multiple Choice

Studios reported a net capital loss of $30,000 in year 5.It reported net capital gains of $14,000 in year 4 and $27,000 in year 6.What is the amount and nature of the book-tax difference in year 6 related to the net capital carryover?

• A)$11,000 unfavorable.
• B)$11,000 favorable.
• C)$16,000 unfavorable.
• D)$16,000 favorable.

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Definitions:

Sensorimotor Stage

The first of the four stages of cognitive development in Piaget's theory, spanning from birth to about 2 years of age, where infants learn through interacting with the world using their senses and motor skills.

Erikson's Eight Ages

A theory of psychological development proposed by Erik Erikson, comprising eight sequential stages across the lifespan, each characterized by a central conflict.

Identity Diffusion

A state in psychosocial development where an individual lacks a clear and coherent sense of personal identity or commitment to life roles.

Industry vs. Inferiority

Industry vs. inferiority is a psychological conflict of early childhood, as identified by Erik Erikson, in which children need to develop a sense of skill and competence.