Which of the Following Statements Regarding Net Operating Losses Generated

question 75

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 is a true statement.

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