Identify Which of the Following Statements Is True

question 90

Multiple Choice

Identify which of the following statements is true.

• A) At the election of a corporation, a net capital loss carryback can be forgone and carried forward only.
• B) Corporate capital loss carrybacks can offset corporate ordinary income earned in previous years.
• C) A corporate capital loss can be carried back three years, and then can be carried forward five years.
• D) All of the above are false.

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Definitions:

Capital

Financial assets or resources that individuals or companies use to fund their business operations and investments.

Bond Prices

The trading price of bonds in the market, which can vary based on interest rates, the bond's credit quality, and other factors, inversely related to changes in interest rates.

Interest Rates

The amount charged by lenders to borrowers for the use of assets, usually expressed as a percentage of the principal.

Limited Partnership

A partnership in which limited partners’ liabilities, investment returns, and control are limited, while general partners have unlimited liability and control.