The Tax Effect of a Net Operating Loss (NOL) Carryback

question 157

Multiple Choice

The tax effect of a net operating loss (NOL) carryback usually:

• A) Results in a current receivable at the end of the NOL year.
• B) Is subject to a valuation allowance.
• C) Is reflected as deferred tax asset at the end of the NOL year.
• D) Is reflected as a deferred tax liability at the end of the NOL year.

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Definitions:

New Home

A dwelling that has never been lived in before, typically freshly constructed or in the process of being built.

Writ Of Execution

A court order that authorizes a local law officer to seize and sell a debtor’s real or personal nonexempt property, within the court’s geographic jurisdiction, to enforce a judgment awarded by the court.

Execution

The act of completing or carrying out a plan, order, or course of action, often related to legal documents or judicial sentences.

Irregular

Not following usual rules, patterns, or processes; deviating from what is normal or expected.