For Corporations, Which of the Following Regarding Net Capital Losses

question 47

Multiple Choice

For corporations, which of the following regarding net capital losses is True?

• A) A corporation that experiences a net capital loss has a favorable book-tax difference in the year of the loss.
• B) A corporation that experiences a net capital loss in year 4 first carries the loss back to year 3, then year 2, and then year 1 before carrying it forward.
• C) Net capital loss carrybacks are deductible in determining a corporation's net operating loss.
• D) Net capital loss carrybacks and carryovers create temporary book-tax differences if they are used before they expire.

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