Identify Which of the Following Statements Is True

question 72

Multiple Choice

Identify which of the following statements is true.

• A)An affiliated group member's allocated share of an NOL from a consolidated return year may not be available as a carryback to a separate return year of the common parent corporation.
• B)If a corporation ceases to be a member of an affiliated group,the corporation is entitled to carry forward its share of the consolidated NOL even if the NOL could be used in full on the consolidated return for the year of cessation.
• C)The SRLY (separate return limitation year)rules are designed to prevent the affiliated group from offsetting its current year taxable income by purchasing corporations having NOL carryovers in order to use their NOLs.
• D)All of the above are false.

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Definitions:

Prestigious

Describes something esteemed or honored, often associated with high status or quality.

Dangerous

Refers to something that is likely to cause harm or poses a risk to safety.

Desirable Location

A geographic area considered attractive for living or business activities due to various factors such as accessibility, environment, or economic opportunities.

Unstable Work Opportunities

Employment situations that are irregular, unpredictable, and precarious, often without long-term security or benefits.