Which of the Following Statements Regarding Net Operating Losses Is

question 12

Multiple Choice

Which of the following statements regarding net operating losses is true?

• A)You may only carry the loss forward 20 years.No carrybacks are allowed.
• B)A net operating loss may be generated by a large medical deduction.
• C)You may select which years would be most beneficial to deduct the net operating loss.
• D)You may make an irrevocable election to opt out of carrying the loss back 2 years.

---

Definitions:

Hemicellulose

A group of complex carbohydrates that, along with cellulose and lignin, form an essential part of the cell walls in plants and help provide structural support.

Dextrin

A group of low-molecular-weight carbohydrates produced by the hydrolysis of starch.

Sieve Tube Elements

Cells that conduct dissolved sugar in the phloem of flowering plants.

Companion Cells

Specialized cells found in the phloem of plants that support the function of sieve tube elements by aiding in nutrient transport and metabolic processes.