TRUE OR FALSE

6. The time period variable is based on the time value of money.

7. Taxable income is defined as gross income minus allowable deductions and credits.

8. The MACRS calculation ignores any salvage or residual value of an asset.

9. Gain realized on a property exchange that is not recognized is actually deferred rather than nontaxable.

10. A corporate shareholder usually cannot be held personally liable for the debts arising from the corporate business.

11. Gabriel operates his business as a sole proprietorship. This year the business incurred an operating loss. The loss can be used to offset other income he earned during the year.

12. At least three corporations are required to form an affiliated group.