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:

Determinant

A scalar value that can be computed from the elements of a square matrix and encodes certain properties of the matrix, such as whether it has an inverse.

Minors

In the context of matrices, minors are the determinant of the square matrices obtained by deleting one row and one column from a larger square matrix.

System of Linear Equations

A collection of one or more linear equations involving the same variables.

Matrix

A rectangular array of numbers, symbols, or expressions, arranged in rows and columns.