Which of the Following Statements Is Incorrect Regarding the Taxation

question 60

Multiple Choice

Which of the following statements is incorrect regarding the taxation of C corporations for tax years beginning after 2017?

• A) NOLs are subject to a 2-year carryback and 20-year carryforward period.
• B) Taxable income of a personal service corporation is taxed at a flat rate of 21%.
• C) A tax return must be filed whether or not the corporation has taxable income.
• D) The alternative minimum tax does not apply.
• E) None of these.

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Definitions:

Discount Factor(s)

Factors used in financial calculations to determine the present value of future payments or cash flows.

Discount Rate

For the purpose of discounted cash flow analysis, this rate of interest is key in determining the existing value of forthcoming cash flows.

Operating Costs

Expenses related to the day-to-day functions of a business, excluding direct materials and direct labor costs.

Donut Maker

A kitchen appliance or tool specifically designed for making donuts.