Studios Reported a Net Capital Loss of $39,000 in Year

question 33

Multiple Choice

Studios reported a net capital loss of $39,000 in Year 5. It reported net capital gains of $32,000 in Year 4 and $45,000 in Year 6. What is the amount and nature of the book-tax difference in Year 6 related to the net capital carryover?

• A) $38,000 unfavorable.
• B) $38,000 favorable.
• C) $7,000 unfavorable.
• D) $7,000 favorable.

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Definitions:

Striving For Superiority

A concept in Adlerian psychology that suggests an individual's motivation to achieve personal excellence and superiority in areas important to them.

Fundamental Fact

A basic, incontrovertible truth or principle that serves as the foundation for further knowledge or understanding.

Wholeness

The state of being complete or undivided; in psychology, it refers to the integration of the conscious and unconscious aspects of the self.

Inferiority

A feeling of being lower in status or quality than others, often leading to self-doubt or lack of confidence.