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:

Keynesian Economists

Keynesian economists follow the theories of John Maynard Keynes, emphasizing the importance of total spending in the economy and its effects on output and inflation.

Decision Making

The process of making choices or selecting options among various alternatives, often based on reasoning or data analysis.

Fiscal Policy

Government policies concerning taxation and spending that influence economic conditions.

Monetary Policy

Monetary policy involves the management of a nation's money supply and interest rates by the central bank to control inflation, stabilize currency, and achieve economic growth.