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.

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Definitions:

Petition

A formal written request, typically one signed by many people, appealing to authority with respect to a particular cause.

Moral Objections

Refusals or oppositions based on personal beliefs about what is right and wrong.

Libel

A form of defamation expressed in print, writing, pictures, or signs, damaging a person's reputation without just cause or excuse.

Slander

A false and defamatory oral statement about a person, harming their reputation.