Which of the Following Statements Is Incorrect Regarding the Taxation

question 80

Multiple Choice

Which of the following statements is incorrect regarding the taxation of C corporations for tax years beginning after 2017?

• A) NOLs are subject to a 2 year carryback and 20 year carryforward period.
• B) Taxable income of a personal service corporation is taxed at a flat rate of 21%.
• C) A tax return must be filed whether or not the corporation has taxable income.
• D) The alternative minimum tax does not apply.
• E) None of the above.

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Definitions:

Inventory Costing

A method used to assign costs to inventory items, which affects the cost of goods sold reported and the inventory's valuation on the balance sheet.

General Journal Entries

Accounting records that document all the financial transactions of a company, used to transfer information to the master ledger.

Raw Materials

These are the basic, unprocessed materials used in the manufacturing of goods, which may include metals, plastics, wood, or chemicals depending on the final product.

Production Department

The division within a company that is focused on the actual manufacturing or production of goods.