Akeem,who Does Not Itemize,incurred a Net Operating Loss (NOL)of $50,000

question 15

Multiple Choice

Akeem,who does not itemize,incurred a net operating loss (NOL) of $50,000 in 2013.His deductions in 2013 included AMT tax preference items of $20,000,and he had no AMT adjustments.Assuming the NOL is not carried back,what is Akeem's ATNOLD carryover to 2014?

• A)$50,000
• B)$30,000
• C)$20,000
• D)$40,000
• E)None of these

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen, representing the benefits an individual, investor, or business misses out on when choosing one option over another.

Fiat Money

Currency that a government has declared to be legal tender, despite it lacking intrinsic value and not being backed by physical commodities.

Legal Tender

Government-issued currency that, by law, must be accepted as a form of payment within the country.

Hyperinflation

An extremely high and typically accelerating rate of inflation, leading to the rapid erosion of the real value of local currency.