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:

Carrying Value

The monetary value of an asset as recorded on the balance sheet, factoring in depreciation, impairments, and amortization.

FVTPL Securities

Financial assets designated at fair value through profit or loss, with changes in fair value recognized in the profit or loss as they occur.

Net Income

The company's earnings following the deduction of all costs, taxes, and expenses from the overall income.

FVTOCI Investments

Financial assets classified as fair value through other comprehensive income; adjustments to their fair value don't affect profit or loss but other comprehensive income.