Identify Which of the Following Statements Is True

question 25

Multiple Choice

Identify which of the following statements is true.

• A)Rules for carryforward and carryback of a consolidated net capital loss and a consolidated NOL are the same with the exception of the carryforward period.
• B)Capital loss carrybacks and carryforwards are all treated as short-term capital losses.
• C)A member leaving an affiliated group cannot use capital loss carryovers that originated in one of its previous separate return years.
• D)All of the above are false.

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Definitions:

Universal Truth

A fundamental principle or fact that is valid at all times and in all places.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis, experimentation, and conclusion.

Method of Authority

The acceptance of information or knowledge based on the credibility or expertise of the source, rather than on empirical evidence.

A Priori Method

An approach that derives conclusions through logical reasoning rather than from empirical observation, often used in philosophy and theoretical sciences.