A Corporation Has the Following Capital Gains and Losses During

question 101

Multiple Choice

A corporation has the following capital gains and losses during the current year: $$\begin{array} { | l | r | } \hline \text { LTCG: } & \$ 15,000 \\\hline \text { LTCL: } & 21,000 \\\hline \text { STCG: } & 3,000 \\\hline \text { STCL: } & 8,000 \\\hline\end{array}$$ The tax result to the corporation is

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

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.