Barry Owns All of the Stock of Jerrico Corporation;an Internet

question 53

Multiple Choice

Barry owns all of the stock of Jerrico Corporation;an internet based gaming firm.Barry is also the President of and works full-time for Jerrico.During the current year,Jerrico has a loss of $125,000 from its operations.
i.If Jerrico is an S Corporation,Barry may deduct the loss on his personal tax return as a deduction for AGI.II.If Jerrico is a regular corporation,the corporation can elect to carryforward the loss to reduce taxable income during the next 20 years.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

CIO

An abbreviation for the Congress of Industrial Organizations, a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955.

Communist Members

Individuals who are part of a political party or movement advocating for communism, a system where property is owned by the community and each person contributes and receives according to their ability and needs.

Red Scare

A term describing the fear and persecution of presumed communists and radical leftists, especially in the United States during the early 20th century, notably in the 1920s and again in the 1950s.