Practice Questions Chapter 8 (1)

Practice Questions Chapter 8 (1) - Practice Questions...

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Practice Questions Chapter 8 1. N&B Inc. sold land worth $385,000. The purchaser paid $80,000 cash and assumed N&B's $305,000 mortgage on the land. N&B's amount realized on sale is $385,000. A. True B. False 2. The installment sale method of accounting is not applicable to realized losses. A. True B. False 3. Which of the following is a capital asset? A. Supplies used in a business B. Business inventory C. Land used in a business D. None of the above 4. Which of the following would be a related party sale? A. Members of the same family B. An individual and a corporation if the individual owns more than 50% of the outstanding stock. C. Two corporations controlled by the same shareholders D. All of the above. E. None of the above. 5. If subtracting recognized capital losses from recognized capital gains results in a net loss, the net loss cannot be deducted. A. True B. False 6. Net capital losses can be carried forward for how many years to a year in which the corporation has a net capital gain?
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Practice Questions Chapter 8 (1) - Practice Questions...

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