Which of the Following Statements About the NOL Deduction Is

question 87

Multiple Choice

Which of the following statements about the NOL deduction is false?

• A)The deduction prevents the tax distortion that could result from an inflexible one-year reporting period.
• B)The deduction results in a tax refund if the NOL can be carried back against previous years' taxable income.
• C)The deduction has value based on the NPV of its related tax savings.
• D)None of the above statements is false.

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Definitions:

Fee Simple Ownership

A type of freehold ownership where the owner has the most complete ownership in the property, including the land and any structures on it, subject to government regulations.

Joint Tenants

Joint tenants are co-owners of property under a legal arrangement where each owns an undivided interest, and upon death, the interest automatically transfers to the surviving joint tenant(s).

Survivorship

Survivorship is a legal principle referring to the right of a surviving joint owner to inherit a shared property in its entirety upon the death of the other joint owner(s).

Escheat

The reversion of land to the Crown when a person possessed of the fee dies intestate and without heirs.