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:

Breach Of Warranty

The violation of a promise or guarantee made about the quality or condition of a product or service, which can give rise to legal action for damages.

Theory Of Liability

The legal concept or basis upon which a party can be held accountable for a wrong or damage in a lawsuit.

Restatement (Third) Of Torts

A compilation by legal scholars summarizing the common law of torts in the United States, aiming to clarify principles and rules.

Strict Liability

A legal doctrine that holds an individual or entity responsible for their actions or products, regardless of fault or intent, particularly in cases of harm or damage.