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:

Treatment Groups

Groups formed with the purpose of providing therapeutic interventions to its members, addressing various mental, emotional, or physical issues.

Reference Groups

Social groups that individuals compare themselves to for self-evaluation or guidance in forming attitudes and behavior.

Membership Groups

Collectives that individuals belong to, where membership is often based on shared interests, objectives, or characteristics, forming a part of their social identity.

Tuckman

Refers to Bruce Tuckman's model of group development, which outlines stages such as forming, storming, norming, and performing that teams typically go through.