If a C Corporation Incurred a Net Operating Loss in 2017

question 72

True/False

If a C corporation incurred a net operating loss in 2017, it could carry the loss back two years and forward 20 years to offset income in those years. However, it may offset only 80 percent of the taxable income before the NOL deduction in those years.

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Definitions:

Entrance

refers to the act or point of entering, which can be physical, such as entering a building, or metaphorical, such as entering a market.

Reducing Profits

Actions or factors that decrease the earnings or profitability of a business.

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical.

Differentiated Products

Goods or services that are distinct in quality, features, or branding, which are not perfect substitutes and allow for product variety in the market.