Under Current U

question 33

Multiple Choice

Under current U.S. tax law for consolidated tax returns:

• A) One entity in the group can use another entity's net operating loss carryforward to its advantage.
• B) The parent can use the net operating loss carryforward of another entity in the group.
• C) A net operating loss carryforward if an entity will be unusable when consolidated tax retruns are prepared.
• D) A net operating loss carryforward of an entity in the group can only be used by that entity.
• E) Since the tax return is for all entities in one consolidated group, the net operating loss carryforward of one entity must be pro-rated to all other entities in the group.

---

Definitions:

Technical Information

Detailed and specialized knowledge or facts concerning a specific field of science, technology, engineering, or mathematics.

Active Voice

A sentence structure where the subject performs the action expressed by the verb, emphasizing the doer of the action.

Main Points

The primary and most important ideas or arguments presented in a discussion or piece of writing.

Paraphrase

To restate another’s ideas in your own words.