Barry Owns All of the Stock of Jerrico Corporation;an Internet

question 53

Multiple Choice

Barry owns all of the stock of Jerrico Corporation;an internet based gaming firm.Barry is also the President of and works full-time for Jerrico.During the current year,Jerrico has a loss of $125,000 from its operations.
i.If Jerrico is an S Corporation,Barry may deduct the loss on his personal tax return as a deduction for AGI.II.If Jerrico is a regular corporation,the corporation can elect to carryforward the loss to reduce taxable income during the next 20 years.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Thebes

An ancient Egyptian city located along the Nile northeast of Luxor, known for its wealth and as a cult center of the god Amun.

Amarna

An archaeological site of an ancient Egyptian city noted for the Amarna Period under Pharaoh Akhenaten, during which radical artistic and religious changes occurred.

Edfu

An Egyptian city known for its well-preserved Ptolemaic temple, dedicated to the falcon god Horus, which is one of the best-preserved temples in Egypt.

Temple

A building dedicated to religious or spiritual activities, such as worship and prayer, commonly associated with a particular deity or religion.