Identify Which of the Following Statements Is False

question 71

Multiple Choice

Identify which of the following statements is false.

• A) Casualty losses incurred by a corporation are deductible subject to a nondeductible floor similar to those applicable to individuals.
• B) The passive loss rules do not apply to widely held C corporations.
• C) Corporations may receive a deduction for dividends received from other corporations.
• D) A corporation with annual gross receipts of $25,000,000 or less can use the accrual method to account for sales, cost of goods sold, inventories, accounts receivable and payable, and the cash method for other income and expenses.

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Definitions:

World Health Organization

An international organization focused on public health and the prevention and treatment of disease worldwide.

Parachuting Cats

An unconventional method used historically in some regions to control rodent populations by air-dropping cats into areas of rodent infestation.

Intrinsic Rate

Often related to growth, it is the maximum rate of increase of a population under ideal conditions.