Modern Ltd

question 6

Multiple Choice

Modern Ltd.had an unused allowable capital loss of $20,000 during the current fiscal year and an unused business loss of $10,000.Modern Ltd.has a December 31 year-end.Which of the following statements is TRUE?

• A)All of the losses will be lost if not used in this fiscal year.
• B)The unused allowable capital loss will become a net-capital loss and can be carried back three years and forward indefinitely, and the unused business loss will become a non-capital loss and can be carried back three years and forward twenty years.
• C)The unused business loss will become a net-capital loss and can be carried back three years and forward indefinitely, and the unused allowable capital loss will become a non-capital loss and can be carried back three years and forward twenty years.
• D)The unused business loss will become a non-capital loss and can be carried back three years and forward indefinitely.

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