Which statement best describes the distinction between regular farm losses and restricted farmlosses?

Question 30 options:

Both regular farm losses and restricted farm losses can be carried back threeyears, but regular farm losses can carry forwardindefinitely, whereas restricted farm losses can be carried forward only twenty years.

In the carry overperiod, regular farm losses can be applied against any source ofincome, whereas restricted farm losses can only be applied to the extent of capital gains in the year.

Full-time farmers can incur regular farmlosses, whereaspart-time farmers or taxpayers whose chief source of income for a taxation year is neither farming nor a combination of farming and another source of income will incur restricted farm losses.

Full-time farmers can incur regular farmlosses, whereas restricted farm losses occur from farming activity where there is no reasonable expectation of profit.