Recognition of Tax Benefits in the Loss Year Due to a Loss

question 30

Multiple Choice

Recognition of tax benefits in the loss year due to a loss carryforward requires

• A) the establishment of a deferred tax liability.
• B) the establishment of a deferred tax asset.
• C) the establishment of an income tax refund receivable.
• D) only a note to the financial statements.

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Definitions:

Positive State

A condition or mood characterized by optimism, happiness, and well-being, where individuals feel fulfilled and content.

Nutritious Diet

A diet that provides all the necessary nutrients, vitamins, and minerals needed for optimal health and well-being.

Regular Exercise

Regularly participating in exercise to enhance or sustain personal health and fitness levels.

Highly Wealthy

Individuals or entities possessing significant financial resources or assets, greatly exceeding the average wealth levels.