A Corporation Has a Net Capital Loss

question 75

True/False

A corporation has a net capital loss. The significance of a net capital loss in 2018 for a corporation is that it can be carried back 3 years and carried forward 5 years by a corporation to offset capital gains in other taxable years.

---

Definitions:

Analytic Thought

The process of breaking down complex information into smaller components for better understanding, assessment, or decision-making.

Inductive Reasoning

An analytical method where various propositions, assumed to be true or often validated as true, are amalgamated to reach a distinct conclusion.

Intuitive Thought

A cognitive process that creates immediate understanding or knowledge without evident rational thought and inference.

Concrete Reasoning

A form of thinking that is focused on the physical and the now, dealing primarily with observable or tangible facts rather than abstract concepts.