Which One of the Following Statements Is Correct for a Corporation

question 21

Multiple Choice

Which one of the following statements is correct for a corporation with a negative net income in both the present and the last fiscal year?

• A)this year's loss can be carried back, but last year's loss cannot be used.
• B)neither of the losses can be used to reduce taxes.
• C)both losses can be carried forward but not backward.
• D)both losses can be carried forward and backward, within certain time limits.

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Definitions:

Robert Selman

A psychologist known for his work on the development of social awareness and the stages of friendship in children.

Intimate

Refers to a close, familiar, and usually affectionate or loving personal relationship with another person or group.

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The act of giving a portion of what one has to others, often implying a sense of generosity or mutual support.

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A common and serious mood disorder that negatively affects how an individual feels, thinks, and handles daily activities.