Fender Corporation was organized in 2008 and had profits in 2008 and 2009.The corporation had an NOL in 2010.The corporation should elect to forgo carrying the NOL back:
A)If it cannot accurately predict future tax rates.
B)If tax rates in the preceding years were high and if lower tax rates are expected in the future.
C)If all of the NOL cannot be used in the carryback years.
D)If tax rates in the preceding years were low and if higher tax rates are expected in the future.
E)None of the above.

Question

Quizplus · Accepted Answer

If tax rates in the preceding years were low and higher tax rates are expected in the future, it may be beneficial to carry the NOL forward to offset future income taxed at higher rates.

Fender Corporation Was Organized in 2008 and Had Profits in 2008