Identify Which of the Following Statements Is True

question 47

Multiple Choice

Identify which of the following statements is true.

• A)An affiliated group member incurring an NOL in a separate return year that is available as a carryback or carryforward to a consolidated return year is subject to a limit on the use of the NOL when the loss year is designated a separate return limitation year (SRLY).
• B)A consolidated NOL may be carried back one year and carried forward twenty years.
• C)An NOL incurred in a separate return limitation year by the corporation that is the common parent corporation for the group in the carryover year is subject to the SRLY limitation.
• D)All of the above are false.

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Definitions:

Grice's Maxim

A set of conversational principles proposed by philosopher H.P. Grice that include quantity, quality, relation, and manner, aiming to make communication effective and cooperative.

Quantity

Specifies the amount or number of a material or immaterial in numerical terms, indicating how much there is of something.

Quality

The standard or degree of excellence of something, often measured against similar things.

Relation

The way in which two or more concepts, objects, or people are connected, or the state of being connected.