When Accounting for the Current Impact of Loss Carrybacks and Carryforwards

question 64

Multiple Choice

When accounting for the current impact of loss carrybacks and carryforwards it is proper to

• A)recognize the tax benefit of the operating loss carryback as an asset
• B)recognize the tax benefit of the operating loss carryforward as an asset
• C)recognize the tax benefit of the operating loss carryback as a deferred liability
• D)recognize the tax benefit of the operating loss carryforward as a deferred liability

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Definitions:

Par Common Stock

The nominal or face value assigned to common stock shares by the issuing company, often used as an accounting standard.

Operations

The day-to-day activities required for a business to function, which can include production, manufacturing, sales, and marketing among others.

Par Common Stock

The nominal or face value assigned to common stock shares in the corporate charter.

Market Price

The ongoing rate for buying or selling an asset or service in the open market.