Perry Owns All of the Stock of Sound Corporation

question 82

Multiple Choice

Perry owns all of the stock of Sound Corporation.Perry is also the President of Sound and works full-time running Sound.During the current year,Sound has a loss of $75,000 from its operations.
i.If Sound is an S Corporation,Perry deducts the loss on his personal tax return as a deduction from AGI.II.If Sound 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:

Federal Reserve

The main bank system in the United States, tasked with managing the country's monetary policy, overseeing banking regulations, ensuring the financial system remains stable, and delivering financial services.

Liabilities

Financial obligations or debts owed by a person, company, or entity to others.

Assets

Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Checkable Deposits

Bank account balances that can be accessed using checks, debit cards, or electronic transfers and are very liquid.