The Harris Consolidated Group Reports a Net Operating Loss (NOL)

question 19

Multiple Choice

The Harris consolidated group reports a net operating loss (NOL) for the year. The tax law works to:

• A) Keep the consolidated group from benefiting when the election to consolidate is motivated chiefly by tax reduction strategies.
• B) Disallow any carrybacks of NOL deductions.
• C) Allow unused charitable contributions a 20-year carryforward.
• D) All of the above statements describe effects of the consolidated return rules.

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Definitions:

Equitable

Fair and impartial treatment, especially in matters of distribution of wealth, opportunities, and privileges within a society.

45-degree Line

A line graphed in economics and finance representing places where two variables measured on the axes are equal in value.

Gini Coefficient

A scale assessing the distribution of income among a population, where 0 denotes total equality and 1 indicates complete disparity.

Income

Periodic financial returns from work engagements or investments.