Which of the Following Statements Is False for a C

question 56

Multiple Choice

Which of the following statements is false for a C corporation that incurred a net operating loss for a tax year ending in 2017?

• A)If it carries back the NOL and/or carries it forward, it may offset up to 80 percent of the taxable income (before the NOL deduction)in those years.
• B)It may carry the NOL forward for up to 20 years and offset up to 100 percent of the taxable income (before the NOL deduction)in those years.
• C)It may carry the NOL back two years and offset up to 100 percent of the taxable income (before the NOL deduction)in those years.
• D)None of these (selecting this option means you believe all of the other responses are true).

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Definitions:

Total Revenue

The cumulative income produced from the primary business operations of a company, manifesting from goods or service sales.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Profit-Maximizing

The process or strategy undertaken by a company to increase its profits to the highest possible level.

Loss-Minimizing

A strategy employed by businesses to reduce financial losses under unfavorable market conditions, often by cutting costs or restructuring operations.