Which of the Following Statements Is True for a C

question 38

Multiple Choice

Which of the following statements is true for a C corporation incurring a net operating loss (NOL) for a tax year that begins in 2019?

• A)It may carry the NOL back two years and forward 20 years.
• B)It may not carry the NOL back to prior years but it may carry it forward 20 years.
• C)It may not carry the NOL back to prior years but it can carry the loss forward indefinitely.
• D)It may carry the loss back two years and carry the loss forward indefinitely.
• E)None of the choices are correct.

---

Definitions:

Borrow

To borrow means to receive something of value with the promise to return it within a specified time frame, often with interest in the case of money.

Year Mortgage

Refers to the term or length of a mortgage, typically specified in years, indicating the repayment period.

Future Value

The value of an investment or a sum of money projected to grow by a specific date, factoring in compound interest or returns.

Interest Rate

The percentage of a sum of money charged for its use, which can vary based on factors such as inflation, supply and demand of credit, and governmental policy.