If a Taxpayer Has an NOL in 2013 of $20,000,of

question 43

Multiple Choice

If a taxpayer has an NOL in 2013 of $20,000,of which $8,000 is attributable to a theft of rental use property,the taxpayer may:

• A)Carry all of the NOL of $20,000 back 5 years.
• B)Carry all of the NOL of $20,000 back 3 years.
• C)Carry $8,000 of the NOL back 3 years and the remainder of the NOL of $12,000 back 2 years.
• D)All of the above.
• E)None of the above.

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Definitions:

Total Asset Turnover

An activity ratio that measures how efficiently the firm uses all of its assets to generate sales; a high ratio generally reflects good overall management.

Efficiently

Performing tasks in the most effective way with the least waste of time and effort.

Assets

Economic resources owned or controlled by an individual or organization that are expected to produce positive economic value.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.