Which of the Following Statements Regarding Net Operating Losses Generated

question 15

Multiple Choice

Which of the following statements regarding net operating losses generated in 2020 is true?

• A) Corporations can carry NOLs back two years and forward up to 20 years.
• B) A corporation can carry over the NOL indefinitely.
• C) A corporation can carry NOLs back two years and forward indefinitely.
• D) When a corporation applies a net operating loss carryover, it reports a favorable, permanent book-tax difference in the amount of the applied carryover.
• E) None of these is a true statement.

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Definitions:

Type A Personality

A personality type characterized by competitiveness, urgency, aggression, and a constant sense of urgency.

Learned Helplessness

A situation in which someone endures a profound sense of being powerless, frequently due to undergoing a traumatic experience or constant lack of success.

Pessimism

A tendency to see the worst aspect of things or believe that the worst will happen, encompassing a lack of hope or confidence in the future.

Self-Control Energy

A concept suggesting that self-control is a limited resource that can be depleted through use, influencing an individual's ability to exercise self-discipline.