A Taxable Entity Has the Following Capital Gains and Losses $\begin{array} { l } \text {Short-term capital loss }&\$(20,000)\\ \text {Long-term capital gain }&13,000\\\end{array}$

question 19

Multiple Choice

A taxable entity has the following capital gains and losses in 2013:
$\begin{array} { l } \text {Short-term capital loss }&\$(20,000) \\ \text {Long-term capital gain }&13,000\\\end{array}$

I.If the entity is an individual,a $7,000 deduction is allowed in 2013.
II.If the entity is a corporation,no deduction is allowed in 2013.

• 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:

Hydro Dams

Large structures built across rivers or streams to control water flow and create reservoirs for hydroelectric power generation, irrigation, or flood control.

Nonrenewable Resources

Natural resources that cannot be replenished at the same rate as they are consumed, including fossil fuels, minerals, and certain groundwater.

Renewable Resources

Natural resources that can be replenished over short periods of time, such as solar energy, wind energy, and biomass.

Net Energy

The difference between the energy expended to harvest an energy source and the amount of energy gained from that source.