Luther Industries Has Outstanding Tax Loss Carryforwards of $70 Million

question 87

Multiple Choice

Luther Industries has outstanding tax loss carryforwards of $70 million from losses over the past four years.If Luther earns $15 million per year in pre-tax income from now on,Luther will fully deplete their NOL carryforwards in:

• A)7 years.
• B)2 years.
• C)4 years.
• D)6 years.

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