Valley Inc

question 97

Multiple Choice

Valley Inc.incurred a $71,400 net operating loss this year.Which of the following statements is true?

• A)Valley can use the NOL only as a carryforward deduction.
• B)Valley can use the NOL only as a carryback deduction.
• C)Valley can elect to use the NOL as a carryforward deduction.
• D)None of the above is true.

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Definitions:

Earthquake

The shaking of the surface of the Earth resulting from a sudden release of energy in the Earth's lithosphere that creates seismic waves.

Volcanic Explosions

Violent eruptions from a volcano, releasing magma, gas, and debris with great force and often with little warning.

Seismic Waves

Waves of energy that travel through the Earth's crust, caused by earthquakes, volcanic eruptions, or other seismic events.

Moving Magma

The flow of molten rock beneath or on the Earth’s surface, which can create volcanic eruptions when it reaches the surface.