Which of the Following Statements Regarding Net Operating Losses Is

question 127

Multiple Choice

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

• A)A corporations can carry a net operating loss incurred in 2017 forward indefinitely.
• B)A corporation can carry forward a net operating incurred in 2018 to 2019 but it may offset only 80 percent of taxable income (before the NOL deduction)in 2019.
• 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)None of these is a true statement.

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Definitions:

Price Effect

The impact on consumer demand and producer supply as a result of a change in the price of a good or service.

HHI

The Herfindahl-Hirschman Index, a measure of market concentration used to determine the level of competition within an industry.

Merger

The combination of two or more companies into a single entity, typically to leverage synergies or improve competitiveness.

Market Share

The portion of a market controlled by a particular company or product.