Which of the following statements is correct?

Question

Quizplus · Accepted Answer

According to the tax laws, a net capital loss can be carried back three years and then forward five years. This means that if a corporation incurs a loss due to the sale of capital assets, it can offset taxes on gains made in the previous three years and also carry forward any unused losses for the next five years.

Option A is incorrect. A net operating loss can be carried back two years and forward twenty years according to the current tax laws.

Option C is also incorrect. The first estimated payment of a corporation is due on the 15th day of the fourth, sixth, ninth, and twelfth months of the fiscal year.

Option D is incorrect. A corporation is entitled to a charitable deduction of up to 10% of its taxable income rather than gross income before certain items.

Which of the Following Statements Is Correct