For Corporations, Which of the Following Regarding Net Capital Losses

question 130

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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Definitions:

Synaptic Vesicles

Membrane-bound sacs within presynaptic neurons that store neurotransmitters, which are released into the synaptic cleft to transmit signals to other neurons.

Neurotransmitter

Chemical substances released at the end of a nerve fiber by the arrival of a nerve impulse and, by diffusing across the synapse, causes the transfer of the impulse to another nerve fiber, a muscle fiber, or some other structure.

Ion

An atom or molecule with a net electric charge due to the loss or gain of one or more electrons, essential in a wide array of biological processes.

Acetylcholinesterase

Enzyme found in the synaptic cleft that causes the breakdown of acetylcholine to acetic acid and choline, thus limiting the stimulatory effect of acetylcholine.