If a C Corporation Incurs a Net Operating Loss in 2017

question 60

True/False

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

Recognize the significance of noncash investing and financing activities.

Apply the direct and indirect methods for reporting cash flows from operating activities.

Interpret the impact of various transactions on cash flow statements.

Understand the full disclosure principle in the context of noncash activities.

---

Definitions:

Hypothalamus

A compact area within the brain that is vital for numerous essential activities, such as hormone secretion and body temperature control.

Thalamus

A structure in the center of the brain that acts as a relay station for sensory information, excluding smell, to the cerebral cortex.

Amygdala

A part of the brain involved in experiencing emotions, particularly fear and pleasure.

Hippocampus

A part of the brain involved in memory formation, organization, and storage, as well as spatial navigation.