The tax effect of a net operation loss (NOL) carrybackusually: 1. results in a c

Question

The tax effect of a net operation loss (NOL) carrybackusually: 1. results in a current receivable at the end of the NOLyear 2. is subject to a valution allowance 3. is reflected as deferred tax asset at the end of the NOLyear 4. Is reflected as a deferred tax liability at the end of theNOL year The tax effect of a net operation loss (NOL) carrybackusually: 1. results in a current receivable at the end of the NOLyear 2. is subject to a valution allowance 3. is reflected as deferred tax asset at the end of the NOLyear 4. Is reflected as a deferred tax liability at the end of theNOL year

Explanation / Answer

If you have a carryback claim for the net operating loss (NOL) or tax credit (or other relevant deferred tax assets), then it is more likely than not that the asset will be realized. Once the carryback claim is filed, the deferred tax asset should be reflected as a tax receivable and categorized as current if payment is expected within 12 months. 3 is your answer

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.