Barry Owns All of the Stock of Jerrico Corporation; an Internet

Multiple Choice

Barry owns all of the stock of Jerrico Corporation; an internet based gaming firm. Barry is also the President of and works full-time for Jerrico. During the current year, Jerrico has a loss of $125,000 from its operations.
i.If Jerrico is an S Corporation, Barry may deduct the loss on his personal tax return as a deduction for AGI.II.If Jerrico is a regular corporation, the corporation can carry the loss forward indefinitely to reduce taxable income in future years.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.