Which of the following statements regarding net operating losses generated in 2020 is true?

Which of the following statements regarding net operating losses generated in 2020 is true?


A) Corporations can carry NOLs back two years and forward up to 20 years.

B) A corporation can carry over 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.


Answer: B


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