Identify Which of the Following Statements Is True

question 72

Multiple Choice

Identify which of the following statements is true.

• A)An affiliated group member's allocated share of an NOL from a consolidated return year may not be available as a carryback to a separate return year of the common parent corporation.
• B)If a corporation ceases to be a member of an affiliated group,the corporation is entitled to carry forward its share of the consolidated NOL even if the NOL could be used in full on the consolidated return for the year of cessation.
• C)The SRLY (separate return limitation year)rules are designed to prevent the affiliated group from offsetting its current year taxable income by purchasing corporations having NOL carryovers in order to use their NOLs.
• D)All of the above are false.

Understand the relationship between supply shifts and their impact on firm profitability within perfectly competitive markets.

Grasp the demand curve facing individual firms in perfectly competitive markets and its implications.

Recognize the role of marginal cost and average total cost in informing production and pricing decisions.

Apply concepts of supply and demand to predict changes in market equilibrium and individual firm outcomes.