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

question 66

Multiple Choice

Akeem,who does not itemize,incurred a net operating loss (NOL) of $50,000 in 2011.His deductions in 2011 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 2012?

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

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Definitions:

Investments

Assets purchased with the expectation that they will generate income or will appreciate in value in the future.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, typically represented by common stock, preferred stock, and retained earnings.

Bond Premium

The amount by which the market price of a bond exceeds its principal amount or par value, often occurring when the bond's interest rate is higher than current market rates.

Effective Interest

The actual interest rate incurred on a loan or bond, reflecting the amortization of any fees or additional costs over the life of the loan.