While a C Corporation's Losses Cannot Be Used by Their

question 55

Multiple Choice

While a C corporation's losses cannot be used by their shareholders to offset personal income, a C corporation may carry back and carry forward losses to help offset the taxable income a corporation had or will have. How are these net operating losses carried back and carried forward?

• A) Carried back two years, carried forward indefinitely
• B) Carried back indefinitely, carried forward two years
• C) Carried back two years, carried forward five years
• D)Carried back two years, carried forward twenty years
• E)None of these

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Definitions:

Field Experimental

A research study conducted in natural settings outside the laboratory to investigate hypotheses under more realistic conditions.

Correlation

A statistical measure that describes the extent to which two variables change together.

Cause-and-Effect Conclusions

Refers to conclusions drawn from observed relationships where a specific event, condition, or factor is considered to lead to another event, condition, or outcome.

Independent Variable

A factor or condition that is intentionally altered by an experimenter in order to observe its impact on another variable.