Unformatted text preview: -term capital loss to deduct from net
capital or Section 1231 gains.
Choice "a" is incorrect. The rule for individual taxpayers (not corporate) allows for a $3,000 deduction
against ordinary income.
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 Choice "c" is incorrect. Corporations cannot deduct any capital losses against ordinary income.
Choice "d" is incorrect. Corporate capital losses are limited to a 3-year carry back and 5-year carry
forward period. CPA-04316 Type1 M/C 136. CPA-04316 A-R Corr Ans: P PII May 92 #5 (Adapted) 1 PM#42 R 3-99 Page 3 Following is Ral Corp.'s condensed income statement, before federal income tax, for the year ended
December 31, 1993:
Cost of sales
Other income (loss):
Net long-term capital loss
Income before federal income tax $1,000,000
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.
- Fall '10
- The Land