ACC 305 Intermediate Accounting III

User Generated

gobar1987

Business Finance

Description

Differentiate between a loss carryback and loss carryforward. Explain the way in which carrybacks and carryforwards affect the reporting of deferred tax assets and deferred tax liabilities.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

tax loss carry forward is a provision in the Tax Code to allow a business to use a to use a net operating loss in one year to offset a profit in one or more future years. This provision is also called a tax loss carry forward. You can elect to carry forward an NOL up to 20 years.

tax loss carry back is a similar type of provision, which allows the business to carry a net operating loss back to offset profits in previous years.



Anonymous
Just what I needed…Fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags