Which of the Following Statements Regarding Net Operating Losses Generated

question 21

Multiple Choice

Which of the following statements regarding net operating losses generated in 2019 is true?

• A) Corporations can carry NOLs back two years and forward up to 20 years.
• B) A corporation can carryover the NOL indefinitely.
• C) A corporation can carry NOLs back two years and forward indefinitely.
• D) When a corporation applies a net operating loss carryover, it reports a favorable, permanent book-tax difference in the amount of the applied carryover.
• E) None of these is a true statement.

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Definitions:

Fixed Action Patterns

Innate, preprogrammed responses triggered by specific stimuli, observed in animal behavior.

Phenotypic

Referring to the observable characteristics or traits of an organism, which result from the interaction of its genotype with the environment.

Montessori School

An educational approach developed by Maria Montessori, emphasizing independence, freedom within limits, and respect for a child’s natural psychological development.

Vygotsky

Lev Vygotsky, a Soviet psychologist who developed a sociocultural theory of cognitive development, emphasizing the role of social interaction and language in learning.