Studios Reported a Net Capital Loss of $30,000 in Year

question 82

Multiple Choice

Studios reported a net capital loss of $30,000 in year 5.It reported net capital gains of $14,000 in year 4 and $27,000 in year 6.What is the amount and nature of the book-tax difference in year 6 related to the net capital carryover?

• A)$11,000 unfavorable.
• B)$11,000 favorable.
• C)$16,000 unfavorable.
• D)$16,000 favorable.

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Definitions:

Telephone Order

A purchasing or order method whereby buyers place orders for products or services via telephone.

Printed Form

Predefined, often standardized documents with spaces to fill in information, used in various administrative and business processes.

Parol Evidence Rule

A principle in contract law that prevents the parties to a written contract from presenting extrinsic evidence of terms of the contract that contradict, modify, or vary the contract's written terms.

Parol Evidence Rule

A legal ruling that prohibits the use of oral statements or previous agreements to contradict or vary the terms of a written contract.