Sporter Enterprises Has Incurred a Tax Loss in the Current

question 25

Multiple Choice

Sporter Enterprises has incurred a tax loss in the current period. Under tax law, which of the following statements is not correct?

• A) A deferred tax asset can be recognised if it is probable that Sporter will earn taxable income in the future.
• B) Assuming all relevant tax laws have been adhered to, Sporter can carry the loss forward to reduce taxable income in future periods.
• C) A deferred tax liability is created, as Sporter will have to pay tax on taxable income in the future.
• D) Sporter cannot carry the loss forward as a deferred tax asset if it is probable that future taxable income will not be earned.

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Definitions:

In-Group

A social group to which a person psychologically identifies as being a member, often characterized by a sense of loyalty and exclusivity.

Secondary Group

A large, impersonal social group whose members pursue a specific goal or activity with little emotional connection among themselves.

Yoga Group

A community or assembly of individuals who practice yoga together, often focusing on improving physical health, mental clarity, and spiritual well-being.

Secondary Group

A group characterized by impersonal, formal, and transient relationships, often organized around a specific goal or activity.