John Tilden Contributes Cash to His Business in Exchange for Capital.John

question 246

Multiple Choice

John Tilden contributes cash to his business in exchange for capital.John is the sole proprietor.The two accounts involved in this transaction are ________.

• A) Accounts Payable and Cash
• B) Cash and Tilden, Capital
• C) Tilden, Capital and Accounts Payable
• D) Tilden, Capital and Accounts Receivable

---

Definitions:

Capital Loss Carryforward

A provision allowing taxpayers to use a net capital loss in one year to offset a net capital gain in future years, subject to limitations.

Capital Loss Carryback

Capital Loss Carryback is a tax provision allowing taxpayers to apply a net capital loss to past tax years’ returns to receive a tax refund for taxes previously paid on capital gains.

Schedule M-1

is a tax form used by corporations to reconcile income reported on tax returns with income reported on financial statements.

Alternative Minimum Tax

A parallel tax system to the regular income tax that ensures that certain taxpayers pay at least a minimum amount of tax.