Identify Which of the Following Statements Is True

question 46

Multiple Choice

Identify which of the following statements is true.

• A)Any amount of net business interest disallowed due to limitation may be carried over indefinitely.
• B)If a corporation accrues an obligation to pay compensation, the corporation must make the payment by year-end to be able to deduct during the current year.
• C)Corporations can deduct up to $10,000 in capital losses per year.
• D)Net business interest is limited to 50% of adjusted taxable income.

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Definitions:

Newline Character

A special character used in computing and text editing to represent the end of a line of text and the start of a new line.

Direct Replacement

The process of substituting an existing item with another that directly takes its place without modification or significant adjustment.