Which of the Following Statements Regarding Capital Gains and Losses

question 8

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 against ordinary income 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:

Construct Systems

Theoretical frameworks used to understand and predict how individuals interpret experiences and phenomena.

Personal Construct Theory

A psychological theory developed by George Kelly, positing that individuals use personal constructs (bipolar dimensions of judgment) to understand and predict the world.

Construe Events

The process of interpreting and understanding events and situations in a particular way, based on personal beliefs, experiences, and perceptions.

Personal Choice

The ability of an individual to make decisions based on their preferences and values.