Identify Which of the Following Statements Is True

question 112

Multiple Choice

Identify which of the following statements is true.

• A) In computing an NOL for the current year, a deduction is allowed for NOLs from previous years.
• B) A corporate NOL can be carried back two years and forward 15 years.
• C) An NOL incurred before 2018 carries forward 20 years and is not subject to the 80% of taxable income limitation.
• D) All of the above are false.

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Definitions:

Absorption Cost

A method of product costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead.

Mark-Up Percentage

Mark-up percentage is the ratio between the cost of a good or service and its selling price, expressed as a percentage over the cost, indicating the profit margin.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment compared to its initial cost.

Cost-Plus Pricing

A pricing approach that involves adding a consistent percentage or fixed sum to the production cost of a product or service to set its sale price.