$\text { A corporation had the following earnings and loss record for the years } 1997 \text { through 2002: }$

question 16

Multiple Choice

$\text { A corporation had the following earnings and loss record for the years } 1997 \text { through 2002: }$
$\begin{array}{cc}1997 & \$ 200,000 \\1998 & 100,000 \\1999 & 100,000 \\2000 & (800,000) \\2001 & 200,000 \\2002 & 300,000\end{array}$
-If the corporation in Figure 2.1 had a 40 percent tax rate for all years, they received a tax refund in2000 in the amount of

• A) $80,000
• B) $240,000
• C) $480,000
• D) $320,000

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Definitions:

UCC

The Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business transactions and contracts.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Mutual Mistake

Mistake as to the same material fact on the part of both parties to a contract. In this situation, either party can cancel the contract.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual agreements.