Albatross, a C corporation, had $140,000 net income from operations and a $25,000 short-term capital loss in the current year. Albatross Corporation's taxable income is $140,000.
Answer the following statement true (T) or false (F)
True
Rationale: A corporation cannot deduct a net capital loss in the year incurred; thus, Albatross has taxable income of $140,000. For corporations, a net capital loss must be carried back three years and forward five years and be offset against capital gains in the carryback/forward years.
You might also like to view...
Dumping includes
A. black market sales to avoid prohibited substances, such as weapons, alcohol, and pornography. B. selling goods priced lower in a foreign market than in the home market to build market share. C. the foreign exporter's selling better products into the market than those manufactured in the home country. D. expanding fast-food franchise operations in foreign markets.
Analysts deciding between investments must consider the comparative risks. Which of the following is/are firm-specific factors that affect the risk of business firms?
a. labor strikes b. loss of facilities due to fire c. poor health of key managerial personnel d. loss of facilities due to earthquake e. all of the above
Which statement is FALSE about consumer boycotts?
A. They are always effective. B. Consumer boycotts usually spark a larger boycott from the other side. C. Successful boycotts focus on a single company over a single issue. D. Advertiser boycotts seem to bring about more change than consumer boycotts.
Refer to Table 5-1. The Steel Shelf Company has a monthly break-even quantity of ________
shelves. A) 500 B) 1,1300 C) 250 D) 580 E) Cannot calculate with information provided.