Which of the Following Statements Regarding Capital Gains and Losses

question 103

Multiple Choice

Which of the following statements regarding capital gains and losses is false?

• A)In terms of tax treatment, corporations generally prefer capital gains to ordinary income.
• B)Like individuals, corporations can deduct $3,000 of net capital losses in a given year.
• C)C corporations can carry back net capital losses three years and they can carry them forward for five years.
• D)Corporations must apply capital loss carrybacks and carryovers in a particular order.

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Definitions:

Nominal GDP

The aggregate monetary worth of every final good and service created inside a country during a particular period, unadjusted for inflation.

Prices

Refers to the amount of money required to purchase goods or services.

Real GDP

An adjustment in a country's economic production figures to account for variations in price levels, either through inflation or deflation, to accurately represent the genuine worth of its goods and services.

Nominal GDP

The gross domestic product measured in current prices, without adjusting for inflation.