Which of the Following Statements About an NOL Deduction Is

question 110

Multiple Choice

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

• A)A taxpayer who deducts an NOL against taxable income for a previous year receives an immediate benefit in the form of a tax refund.
• B)The value of an NOL carryforward deducted next year is more than the value of an NOL carryforward deducted in five years.
• C)The value of an NOL carryforward deduction depends on the taxpayer's discount rate and future marginal tax rate.
• D)None of the above is false.

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Definitions:

Price

The sum of money needed to buy a product, service, or asset.

Quantity

The quantity of a tangible or intangible product or service.

Inelastic Region

The inelastic region on a demand curve represents a range where a change in price has little to no effect on the quantity demanded of a good or service.

Demand Curve

A graphical representation showing how the quantity demanded of a good or service varies with its price, ceteris paribus.