Identify Which of the Following Statements Is True

question 9

Multiple Choice

Identify which of the following statements is true.

• A)A corporate NOL can be carried back two years and forward 15 years.
• B)An NOL incurred before 2018 carries forward 20 years and is not subject to the 80% of taxable income limitation.
• C)In computing an NOL for the current year, a deduction is allowed for NOLs from previous years.
• D)All of the above are false.

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Definitions:

Compression Ratio

The ratio of the volume of its combustion chamber from its largest capacity to its smallest capacity, used in internal combustion engines.

Cylinder

A chamber within an engine where a piston moves to compress fuel and air, creating the combustion needed for power.

Piston

An engine part that forms the lower section of the combustion chamber. Pressure is exerted on the top of the piston, forcing it down in the cylinder. This movement is transmitted through the connecting rod to the crankshaft. The term piston also refers to pistons used in hydraulic components, such as master cylinders, wheel cylinders, and calipers. The pistons in hydraulic components are used to apply pressure or force.

Bottom Dead Center

The lowest point that a piston reaches in its cylinder during its movement in an engine, opposite of top dead center.