Which of the Following Is Allowable as a Deduction in Calculating

question 12

Multiple Choice

Which of the following is allowable as a deduction in calculating a corporation's net operating loss?

• A) Charitable contribution deduction.
• B) Net capital loss carryback.
• C) Net operating loss carryover from other years.
• D) Both A and C are deductible in computing the current year NOL.

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Definitions:

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing an excess return over and above normal profits.

Price Takers

Firms or individuals who accept the market price as is because they do not have enough market power to influence the price of the goods or services they sell.

Downward-Sloping Demand

A concept in economics that indicates demand for a good or service decreases as its price increases, assuming all other factors remain constant.