Which of the Following Statements Regarding Net Operating Losses Generated

question 43

Multiple Choice

Which of the following statements regarding net operating losses generated in 2017 is true?

• A) Corporations can carry net operating losses back two years and forward up to 15 years.
• B) A corporation may elect to forgo carrying a net operating loss back and instead carry it over to future years.
• C) When a corporation applies a net operating loss carryover, it reports a favorable, permanent book-tax difference in the amount of the applied carryover.
• D) Marginal tax rates are irrelevant in determining the tax benefit of applying a net operating loss carryback or carryover.
• E) None of these is a true statement.

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Definitions:

Flesh and Blood

A phrase used to denote a living human being, often emphasizing common human nature or familial bonds.

RUPA

The Revised Uniform Partnership Act, which governs the operation of partnerships in the United States.

Jointly and Severally

A legal term indicating that parties can be held responsible together or individually for a debt or obligation.