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Dennis_Churaev [7]
2 years ago
6

Which of the following statements regarding net operating losses generated in 2020 is true? A) A corporation can carry NOLs back

two years and forward indefinitely. B) When a corporation applies a net operating loss carryover, it reports a favorable, permanent book–tax difference in the amount of the applied carryover. C) Corporations can carry NOLs back two years and forward up to 20 years. D) A corporation can carry over the NOL indefinitely. E) None of these is a true statement.
Business
2 answers:
Butoxors [25]2 years ago
6 0

Answer:

D) A corporation can carry over the NOL indefinitely.

Explanation:

A net operating loss (NOL) can said to exists in a situation where a company's or organization deductions exceed their taxable income and A NET OPERATING LOSS can as well help benefit a company by trying to reduce their taxable income in the future which is why NOLs may now be carried forward indefinitely until such loss is fully recovered, Although they are said to be limited to only 80% of that taxable income in any one tax period which is why these NOLs can be carried forward indefinitely instead of them been limited to only 20 years.

kirill115 [55]2 years ago
4 0

Answer:

A corporation can carry over the NOL indefinitely

Explanation:

A net operating loss occurs when a companies tax payment exceeds its taxable income. Companies make this excess payment to offset future tax liabilities.

For example farms can generate much profit this year, but next year when they are offseason profits will be low. A NOL can be used to settle next year's tax liability.

After 2018 corporations can now carry forward NOL indefinitely as far as the NOL is not greater than 80% of previous year's income.

Before 2018 Corporations can carry NOLs back two years and forward up to 20 years.

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Internal information provides an understanding of factors outside of the organization
svp [43]

Answer:

false

Explanation:

Internal information is the information developed from activities that occur within the organization.

Definition

4 0
2 years ago
Sheridan Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An emplo
Artist 52 [7]

Answer:

A. The cost of asset being depreciated is $57,000

B.The amount of salvage value is $5,700

Explanation:

Among the above-mentioned methods of depreciation, the only method that never consider salvage value on its computation of depreciation expense is the double declining method. So let’s use this method to work back the exact amount depreciable amount of an asset.

Formula : 100% / life of an asset x 2

100% / 5 x 2 = 40%

Y1 = $22,800/40 = 57,000

so to check if the amount is correct, let’s do the computation of 5-year depreciation.

Y1 57,000 x 40% = 22,800 (same as the given data)

Y2 (57,000 - 22,800) x 40% =13,680

Y3 (57,000 - 22,800 - 13,680) x 40% = 8,208

Y4 (57,000-22,800 - 13,680 - 8,208) x 40% = 4,925

Y5 (57,000 -22,800 - 13,680 - 8,208 - 4,925) x 40% = 1,687* (adjusted based on the depreciable amount)

B. To compute the salvage value, we simply deduct the total depreciation from the cost of an asset.

57,000 - 51,300 = 5,700

To check:

(57,000 - 5,700) / 5 years = 10,260

8 0
3 years ago
A farmer grows a bushel of wheat and sells it to a miller for $1. The miller turns the wheat into flour and then sells the flour
SIZIF [17.4K]

Answer: Value added by farmer = $1 Value added by miller = $2  Value added by the baker =  $3

GDP contribution is $6.

Explanation: GDP refers to the market value of final goods and services produced withing the national territory of a country.

Using the value added method, we can calculate GDP by summing up the value added at each level of production.

Value added by farmer = $1 Value added by miller = $3 -$1 = $2  Value added by the baker = $6 - $3 = $3

GDP = Value added by the farmer +Value added by the miller + Value added by the baker  = $1 + $2 +$3 =$6

Or

Using the expenditure approach, GDP is the market value of the final good sold to the customer.

GDP = Cost of bread to the engineer = $6

6 0
3 years ago
A horse was galloping at a speed of 50km/h for the first 12 minutes. For the next x minutes, the horse became fatigued, and its
loris [4]

Answer:

16km Answer

see image for solution

8 0
3 years ago
Randolf, a wealthy connoisseur of arts, was invited to an art exhibition. He became very interested in one of the showcased pain
Citrus2011 [14]

Answer:

The answer is A. Mutual mistake

Explanation:

A contract is an agreement ( whether written or verbal ) between two parties that is legally binding.  

A mutual mistake occur in a contract when both parties to a contract are mistaken about a material fact. It is a situation where the parties to a contract have identical misconception about a material fact in the contract.

In the explanation given in the contract between Randolf and the Art gallery manager, it is obvious that the art painting that is to be bought and sold was not well clarified by both parties, and the art manager acted based on an invalid assumption.

Hence the correct answer to this question is  A. Mutual mistake

7 0
3 years ago
Read 2 more answers
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