Constance Owns a Boutique

question 74

Multiple Choice

Constance owns a boutique.During the current year,she has gross income of $400,000 and allowable deductions related to the business of $425,000.
I.Constance has incurred a transaction loss,which represents her unrecovered cost of capital.
II.Constance has suffered an annual loss,which may be carried back 2 years or forward 20 years if not used in the current year.
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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:

Older Adult

An individual who has reached a relatively advanced age, often considered to be ages 65 and above.

Psychological

Related to the mind or mental processes, affecting or concerning the psychological state of an individual.

Inflicting Harm

The act of causing physical, emotional, or psychological injury or damage to someone or something.

Physical Abuse

The infliction of bodily harm or injury upon another person through forceful or violent contact.