A Large Corporation Had a Net Long-Term Capital Loss in 2019

question 27

Multiple Choice

A large corporation had a net long-term capital loss in 2019 and net operating loss in 2019.What are the earliest year(s) to which these losses can be carried?

• A)2014 for both
• B)2020 for both
• C)2016 for the capital loss; 2014 for the NOL
• D)2016 for the capital loss; 2020 (or the first subsequent year with net income) for the NOL

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Definitions:

New Firms

New firms are businesses that have been recently established, entering the marketplace with the intention to offer goods or services.

Creative Destruction

A process through which new innovations cause older technologies or models to become obsolete, promoting progress but also potentially leading to job losses.

Economic Recession

A temporary downturn in economic activity, characterized by decreased trade and industrial output, usually marked by a decrease in the Gross Domestic Product (GDP) for two consecutive quarters.

Automobile Production

The process of manufacturing cars, involving assembly of various components such as engine, chassis, bodywork, and electronics.