Which of the Following Statements Is Incorrect with Respect to the Treatment

question 51

Multiple Choice

Which of the following statements is incorrect with respect to the treatment of net operating losses by corporations?

• A)A corporation may elect to forgo the carryback period and just carryforward an NOL.
• B)A corporation may claim a dividends received deduction in computing an NOL.
• C)An NOL is generally carried back 2 years and forward 20 years.
• D)Unlike individuals, corporations do not adjust their NOLs for net capital losses or nonbusiness deductions.
• E)None of the above.

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Definitions:

Direct Labor-Hours

The aggregate of hours spent by staff members who are directly engaged in producing merchandise or rendering a service.

Job-Order Costing

A cost accounting system that assigns costs to specific production batches or jobs, making it suitable for customized orders.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders, based on a particular activity base.

Machine-Hours

A measure of production time used in cost accounting, representing the number of hours that machinery is in operation during a given period.