While a C Corporation's Losses Cannot Be Used by Their

question 55

Multiple Choice

While a C corporation's losses cannot be used by their shareholders to offset personal income, a C corporation may carry back and carry forward losses to help offset the taxable income a corporation had or will have. How are these net operating losses carried back and carried forward?

• A) Carried back two years, carried forward indefinitely
• B) Carried back indefinitely, carried forward two years
• C) Carried back two years, carried forward five years
• D)Carried back two years, carried forward twenty years
• E)None of these

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