A Corporation Generates a Net Operating Loss in 2018

question 1244

Multiple Choice

A corporation generates a net operating loss in 2018. Which of the following statements is correct regarding the corporation's ability to deduct the NOL?

• A) The NOL can only be carried forward, but the carryover period is unlimited.
• B) The NOL can be carried back three years and carried forward five years, with any excess NOL lost.
• C) The NOL can be carried forward five years, with any excess NOL lost.
• D) The NOL can be carried back two years and carried forward 20 years, with any excess NOL lost.

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Definitions:

Statement Of Objective

A clear and concise declaration of the goals or purposes of a project, paper, or mission, outlining intended outcomes.

Résumés

A document summarizing an individual's background, skills, and accomplishments, typically used for job applications.

Include

To contain as a part of something.

Analyze

To examine something in detail in order to understand it better or to draw conclusions from it.