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.

---

Definitions:

M'Naghten Rule

The M'Naghten Rule is a legal principle establishing a standard for determining criminal responsibility, based on the defendant's ability to distinguish right from wrong at the time of the crime.

Guilty Mind

A state of mind that indicates a consciousness of wrongdoing, an essential element in establishing liability for a crime.

Disease of the Mind

A legal or medical concept referring to conditions that affect mental functioning, often used to discuss the basis of insanity defenses or mental health conditions.

State of Mind

The condition of a person's mental and emotional state at a specific time, influenced by their thoughts, feelings, and environment.