Studios Reported a Net Capital Loss of $38,500 in Year

question 21

Multiple Choice

Studios reported a net capital loss of $38,500 in Year 5. It reported net capital gains of $31,000 in Year 4 and $44,000 in Year 6. What is the amount and nature of the book-tax difference in Year 6 related to the net capital carryover?

• A)$36,500 unfavorable.
• B)$36,500 favorable.
• C)$7,500 unfavorable.
• D)$7,500 favorable.

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Definitions:

Output

The data sent out by a computer or software to an external device or to a user, such as display screens, printers, or files.

Int[]

In many programming languages, denotes an array of integers, which is a collection of integer values stored in contiguous memory locations.

Forint

The currency used in Hungary.

Console Application

A computer program designed to be used through a text-only computer interface, such as a text terminal, the command-line interface of some operating systems, or a text-based user interface.