Which of the Following Statements Is Incorrect with Respect to the Treatment

question 51

Multiple Choice

Which of the following statements is incorrect with respect to the treatment of net operating losses by corporations?

• A)A corporation may elect to forgo the carryback period and just carryforward an NOL.
• B)A corporation may claim a dividends received deduction in computing an NOL.
• C)An NOL is generally carried back 2 years and forward 20 years.
• D)Unlike individuals, corporations do not adjust their NOLs for net capital losses or nonbusiness deductions.
• E)None of the above.

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Definitions:

Potato Chips

Thin slices of potato that are fried or baked until crisp and served as a snack.

Tornado Siren

An audible siren or alarm system used to warn people in a specific area about the imminent threat of a tornado.

Benefit

An advantage or profit gained from something.

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it without paying for it.