Which of the Following Statements Is True Regarding the Tax

question 48

Multiple Choice

Which of the following statements is true regarding the tax benefits from a loss corporation's carryovers that can be used by the successor corporation?

• A) The net present value of an NOL carryover must be computed using the Federal long-term tax-exempt rate for the discount rate.
• B) If the maximum allowable by the § 382 limitation cannot be used in the current year because there is not enough income earned by the successor corporation, the unused portion can be carried forward and added to the next years' limitations.
• C) None of the loss tax attributes will be available to the successor if an ownership or equity shift occurs within three years.
• D) The § 382 yearly limitation is applied first to the NOL and capital loss carryovers, then to built­in losses, and lastly to credit carryovers.
• E) None of the above statements is true.

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Definitions:

Interlocutory Injunction

A court order issued before a trial to stop an ongoing injury.

Anton Piller Order

A court order that allows for the search of premises and the seizure of evidence without prior warning, typically used to prevent the destruction of evidence.

Permanent Injunction

A court order that permanently requires an individual or entity to either cease a specific activity or perform a specific act indefinitely into the future.

Certiorari

A court order overturning a decision and making it null and void.