Which of the Following Statements About the NOL Deduction Is

question 21

Multiple Choice

Which of the following statements about the NOL deduction is false?

• A) The deduction prevents the tax distortion that could result from an inflexible one-year reporting period.
• B) The deduction can reduce taxable income to zero in carryforward years.
• C) The deduction has value based on the NPV of its related tax savings.
• D) None of these choices are false.

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Definitions:

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