Which of the Following Statements Regarding Capital Gains and Losses

question 88

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:

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The capital city of Russia, known for its historical and political significance, as well as being a major cultural and scientific center.

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A series of laws and diplomatic agreements, initiated in 1942, between the U.S. and Mexico, allowing millions of Mexican men to come to the United States to work on short-term, primarily agricultural labor contracts.

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