Ladow IncIncurred a $32,000 Net Operating Loss in 2017

question 115

Multiple Choice

Ladow Inc.incurred a $32,000 net operating loss in 2017.Ladow's 2015 taxable income was $28,000,and its 2016 taxable income was $149,200.Use the corporate tax rates included in Appendix C to compute Ladow's refund from an NOL carryback deduction.

• A)$5,760
• B)$10,880
• C)$12,480
• D)None of the above

---

Definitions:

Short-Sale

A trading strategy that involves selling borrowed securities with the expectation of buying them back at a lower price to profit from a decline in their value.

LIBOR

The London Interbank Offered Rate, previously a benchmark interest rate at which major global banks lend to one another.

Bankers' Acceptances

Short-term debt instruments issued by a company that is guaranteed by a commercial bank, commonly used in international trade.

Brokers' Calls

The interest rate charged by banks on loans extended to brokerage firms for the purpose of funding clients' margin accounts.