Which of the Following Statements Regarding Net Operating Losses Generated

question 119

Multiple Choice

Which of the following statements regarding net operating losses generated in 2016 is true?

• A) Corporations can carry net operating losses back two years and forward up to 15 years.
• B) A corporation may elect to forgo carrying a net operating loss back and instead carry it over to future years.
• C) When a corporation applies a net operating loss carryover, it reports a favorable, permanent book-tax difference in the amount of the applied carryover.
• D)Marginal tax rates are irrelevant in determining the tax benefit of applying a net operating loss carryback or carryover.
• E)None of these

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Definitions:

Newspaper

A printed publication, typically issued daily or weekly, containing news, feature articles, advertisements, and correspondence.

Puzzle Pieces

Individual elements that, when correctly assembled together, form a complete picture or solution, often used metaphorically to describe the solving of complex problems.

Sensory Deprivation

The reduction or elimination of sensory stimuli from one or more of the senses, typically used for relaxation or in various experiments.

Perceptual

Relating to the ability to interpret or become aware of something through the senses.