This Year,Garfield Inc

question 3

Multiple Choice

This year,Garfield Inc.generated a $25,000 net operating loss.Which of the following statements is false?

• A)If Garfield can carry the entire NOL back to deduct against prior year taxable income,the NOL will have no deferred tax consequences.
• B)If Garfield can't use any of the NOL as a carryback deduction,the NOL will result in a deferred tax liability.
• C)Garfield can elect to give up the carryback of the NOL.
• D)If Garfield can't use any of the NOL as a carryback deduction,it can carry the NOL forward for 20 years.

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Definitions:

Substantive Unconscionability

A condition where a contract or a specific contract term is so unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.

Contract Language

The specific phrasing and terminology used in contracts to clearly define rights, responsibilities, obligations, and other agreements between parties.

Usury Statute

Laws that set maximum interest rates that can be charged on loans to prevent predatory lending practices.

Maximum Rate

The highest permissible interest rate or charge on a loan as defined by law or regulation.