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:

Saltatory Conduction

Movement of nerve impulses from one node to another along a myelinated axon.

Axonal Membrane

The specialized cell membrane on the axon part of a neuron, responsible for carrying nerve impulses.

Resting Potential

The difference in electric charge between the inside and outside of a resting neuron's plasma membrane.

Cerebellum

A major structure of the hindbrain that is involved in fine motor coordination, balance, and motor learning.