A Corporation Generates a Net Operating Loss in 2019

question 75

Multiple Choice

A corporation generates a net operating loss in 2019.Which of the following statements is correct regarding the corporation's ability to deduct the NOL?

• A)The NOL can be carried back two years and carried forward 20 years,with any excess NOL lost.
• B)The NOL can be carried back three years and carried forward five years,with any excess NOL lost.
• C)The NOL can be carried forward five years,with any excess NOL lost.
• D)The NOL can only be carried forward,but the carryover period is unlimited.

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Definitions:

Large Number

A numeric value that is significantly above average or expected in size or magnitude.

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Zero-Sum Game

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