Which of the Following Statements Regarding Capital Gains and Losses

question 34

Multiple Choice

Which of the following statements regarding capital gains and losses is false?

• A) C corporations can carry back net capital losses three years and they can carry them forward for five years.
• B) In terms of tax treatment, corporations generally prefer capital gains to ordinary income.
• C) Corporations must apply capital loss carrybacks and carryovers in a particular order.
• D) Like individuals, corporations can deduct $3,000 of net capital losses against ordinary income in a given year.

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Definitions:

Observations

Observations are individual instances or data points collected through experiments, surveys, or other data collection methods, used to analyze trends, patterns, or behaviors in research.

Performance Rating

An evaluation of an employee's work performance, often used to guide decisions on promotions, raises, and development.

Standard Time

The established amount of time required to perform a specific task or operation under normal working conditions, often used in industrial settings for performance benchmarking.

Constant Allowances

Fixed time increments added to the standard time to account for delays or non-productive aspects of a job, ensuring more accurate time estimates.