Which of the following statements is false for a C corporation that incurred a net operating loss for a tax year ending in 2017?
A)If it carries back the NOL and/or carries it forward, it may offset up to 80 percent of the taxable income (before the NOL deduction)in those years.
B)It may carry the NOL forward for up to 20 years and offset up to 100 percent of the taxable income (before the NOL deduction)in those years.
C)It may carry the NOL back two years and offset up to 100 percent of the taxable income (before the NOL deduction)in those years.
D)None of these (selecting this option means you believe all of the other responses are true).

Question

Quizplus · Accepted Answer

A C corporation that incurs a net operating loss for a tax year ending in 2017 may carry the NOL back two years and offset up to 100 percent of the taxable income (before the NOL deduction) in those years. It may also carry the NOL forward for up to 20 years and offset up to 80 percent of the taxable income (before the NOL deduction) in those years. Therefore, statement A is false because it incorrectly states the percentage of taxable income that may be offset when carrying back or carrying forward the NOL.

Which of the Following Statements Is False for a C