Choice c is incorrect a corporations capital losses

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Unformatted text preview: he corporation's ordinary income. Carried forward 20 years. CPA-02024 Explanation Choice "b" is correct. A C corporation's net capital losses are carried back three years and forward five years. Choice "a" is incorrect. This is incorrect because it states the rule for an individual taxpayer. Choice "c" is incorrect. A corporation's capital losses can be used only to offset capital gains, and any excess is carried back three years and forward five years. Choice "d" is incorrect. A C corporation's net operating losses may be carried back two years and forward twenty years. CPA-02032 Type1 M/C 11. CPA-02032 ARE R02 #3 A-D Corr Ans: C PM#15 R 3-01 Page 27 Which of the following conditions must be satisfied for a taxpayer to expense, in the year of purchase, under Internal Revenue Code Section 179, the cost of new or used tangible depreciable personal property? I. The property must be purchased for use in the taxpayer's active trade or business. II. The property must be...
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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.

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