A Corporation's Records Show the Following Assume the Corporation Has Never Had Dividend Income and Its

question 9

Multiple Choice

A corporation's records show the following: $$\begin{array} { l r r r c r } 2009 & 2010 & 2011 & 2012 & 2013 \\\text { Net operating gain (loss) } & \$ 6,000 & \$ 16,000 & \$ 42,000 & \$ 27,000 & ( \$ 65,000 ) \end{array}$$ Assume the corporation has never had dividend income and its only NOL occurred in 2012.Using the NOL carryback provisions of the Code, on what portion of income in 2012 will tax not be refunded?

• A)$0
• B)$4,000
• C)$20,000
• D)$27,000
• E)None of the above

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Definitions:

Strict Product Liability

A legal doctrine that holds sellers or manufacturers liable for defective products regardless of fault or intent, as long as the product was used as intended.

Manufacturer Actions

Refers to the measures or steps taken by a manufacturer in response to product design, production, marketing, and safety concerns.

Defective Condition

A state of imperfection or malfunction in a product that makes it hazardous or unfit for its intended use.

State-Of-The-Art Defense

A legal defense used in product liability cases where the defendant claims the product was using the best technology available at the time of design or manufacture.