A Taxable Entity Has the Following Capital Gains and Losses $\begin{array}{lr}\text { Short-term capital loss } & \$(20,000) \\\text { Long-term capital gain } & 13,000\end{array}$

question 84

Multiple Choice

A taxable entity has the following capital gains and losses in 2018:
?
$\begin{array}{lr}\text { Short-term capital loss } & \$(20,000) \\\text { Long-term capital gain } & 13,000\end{array}$

I.If the entity is an individual, $a \$ 7,000$ deduction is all owed in 2018 .
II.If the entity is a corporation, no deduction is allowed in 2018.

• 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:

Stare Decisis

A principle in law where courts are bound by their own previous decisions or the decisions of higher courts in similar cases, ensuring legal consistency and predictability.

Erroneous Decisions

Decisions that are wrong or incorrect due to errors in judgement, fact, or procedure.

Private Law

A branch of law that governs relationships between individuals and entities, such as contracts, property, and family law, as opposed to public law which involves the state.

Equitable Remedy

A judicial order enforcing a right or redressing a wrong, granted when monetary damages are not sufficient as relief.