If a Corporation Cannot Use Its Interest Payments to Get

question 64

Multiple Choice

If a corporation cannot use its interest payments to get tax shield for a particular year because it has suffered a loss, it is still possible to get the tax shield because of the:
I. carry back provision that allows corporations to carry back the loss and receive a tax refund up to the amount of taxes paid in the previous two years.
II. carry forward provision that allows corporations to carry forward the loss and use it to shield income in subsequent years.

• A) I only
• B) II only
• C) I and II
• D) none of the above

---

Definitions:

Needs Assessment

A systematic process used to determine and address the gaps between current conditions and desired conditions or wants.

Task Analysis

The process of breaking down a task into its component steps or actions to understand the requirements for successful performance.

Learning Management System

A software application for the administration, documentation, tracking, reporting, and delivery of educational courses or training programs.