Exam 5: Corporate Operations

During 2019, Hughes Corporation sold a portfolio of stock it had held for five years at a loss of $200,000. It also sold some investment land and recognized a capital gain of $180,000. In 2017, Hughes reported a net capital gain of $12,000 and in 2018 it recognized a net capital gain of $6,000. What is the amount of its net capital loss carryover to 2020?

If a corporation's cash charitable contributions exceed the charitable contribution deduction limit, what kind of book-tax difference is created?

For tax purposes, a corporation may deduct the entire amount of a net capital loss in the year incurred.

Which of the following statements regarding the dividends and/or the dividends received deduction (DRD) is true?

The rules for consolidated reporting for financial statement purposes are the same as the rules for consolidated reporting for tax purposes.

A corporation may carry a net capital loss back two years and forward 20 years.