Akeem, Who Does Not Itemize, Incurred a Net Operating Loss

question 20

Multiple Choice

Akeem, who does not itemize, incurred a net operating loss NOL) of $50,000 in 2017. His deductions in 2017 included AMT tax preference items of $20,000, and he had no AMT adjustments. Assuming the NOL is not carried back, what is Akeem's ATNOLD carryover to 2018?

• A) $50,000
• B) $30,000
• C) $20,000
• D) $40,000
• E) None of the above

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Definitions:

Generalization Gradient

A concept in psychology and behavioral science describing the decrease in response strength with increasing difference from the original conditioned stimulus.

Discrimination Learning

The process of learning to respond differently to various stimuli, distinguishing between those that are rewarded and those that are not.

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus to which the response was originally conditioned.

Second-order Conditioning

A form of learning where a stimulus that initially had no significance becomes conditioned as a result of being paired with another stimulus that already induces a conditioned response.