Which of the Following Statements Regarding Net Operating Losses Generated

question 48

Multiple Choice

Which of the following statements regarding net operating losses generated in 2020 is true?

• A)Corporations can carrythe NOL back two years and forward up to 20 years.
• B)A corporation can carry over the NOL indefinitely.
• C)A corporation can carrythe NOL back two years and forward indefinitely.
• D)When a corporation applies a net operating loss carryover, it reports a favorable, permanent book-tax difference in the amount of the applied carryover.
• E)None of these is a true statement.

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Definitions:

Cognitive Dissonance

The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

Groupthink

A psychological phenomenon where the cohesion of the group becomes more important than considering facts realistically, leading to poor decisions.

Suppress Disagreement

The act of deliberately preventing or reducing the expression of differing opinions or conflicts.

Harmony

A pleasing combination or arrangement of different things, often referring to music, but also applicable to social and personal contexts.