Which One of the Following Statements Is Correct for a Corporation

question 35

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.

---

Definitions:

Atomic Bombs

Powerful nuclear weapons that release enormous energy through nuclear reactions, historically used during World War II on the Japanese cities of Hiroshima and Nagasaki.

Good Neighbor Policy

A foreign policy adopted by the United States during the presidency of Franklin D. Roosevelt towards Latin America, aiming at non-intervention and non-interference in the domestic affairs of Latin American countries.

Canadian Support

Refers to the assistance or backing Canada provides, potentially in contexts such as international relations, economics, or social issues.

Normandy Invasion

The Allied Forces' military campaign initiated on June 6, 1944 (D-Day), aimed at liberating Nazi-occupied France during World War II.