If a Firm Cannot Use Available Tax Shields in the Year

question 29

Multiple Choice

If a firm cannot use available tax shields in the year those tax shields are available,what happens to the benefits of those tax shields?

• A)The benefits are not lost or reduced because they can be used to offset or reduce future taxable income.
• B)The benefits of the tax shields are always lost and cannot be taken advantage of in future years.
• C)The benefits are allocated to other firms in the industry.
• D)The benefits provided by the tax shields are either lost because the tax shield benefits expire or are reduced because the benefits are taken in later years.

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Definitions:

Taste Pore

An opening on the surface of the taste bud through which tastants (taste substances) enter.

Taste Hair

Microscopic hair-like structures on taste buds that interact with food molecules to perceive taste.

Visual Acuity

The clarity or sharpness of vision, measured by the ability to discern letters or numbers at a specific distance according to a standard chart.

Fovea Centralis

Depression in the middle of the macula where there are only cones and no blood vessels.