In the Current Year, Amber, Inc

question 88

Multiple Choice

In the current year, Amber, Inc., a calendar C corporation, has income from operations of $200,000 and operating deductions of $225,000. Amber also had $30,000 of dividends from a 25% stock ownership in a domestic corporation. Which of the following statements is incorrect with respect to Amber's net operating loss deduction?

• A)The NOL is carried back 3 years and forward 10 years by Amber.
• B)Amber's NOL is $19,000.
• C)A dividends received deduction is allowed in computing Amber's NOL.
• D)Amber can elect to forgo the carryback period and only carry forward the NOL.
• E)None of the above.

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Definitions:

Distribution

in economics, refers to the way total output, income, or wealth is distributed among individuals or among the factors of production (such as labor, land, and capital).

Production

The process of creating, manufacturing, or producing goods and services, involving labor, raw materials, and tools to fulfill human wants or needs.

Post-industrial Societies

Societies characterized by an economy in which the service sector produces more wealth than the industrial sector, emphasizing information technology and knowledge-based activities.

Knowledge-based Activities

Tasks or occupations that primarily involve the manipulation of information and knowledge, rather than physical labor or manual work.