In Comparing Regular C Corporations with Individuals, Which of the Following

question 120

Multiple Choice

In comparing regular C corporations with individuals, which of the following, if any, relates only to C corporations?

• A)A net short-term capital gain is taxed as ordinary income.
• B)An election can be made to defer recognition of gain on an involuntary conversion.
• C)The carryover period for excess capital losses is unlimited.
• D)Excess capital losses can be carried back.

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Definitions:

Unit Cost

The cost incurred to produce, manufacture, or acquire one unit of a product or service.

Economic Profits

Profits that exceed both the explicit and implicit costs of a business, including a normal return on investment.

Differentiate Products

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Interindustry Competition

The competition for sales between the products of one industry and the products of another industry.