When can benefits of an income tax loss in an interim period not be recognized in that period?
A)If the loss will be offset by taxable income later in that year
B)If the loss can be used as a loss carryback
C)If it is more likely than not that a tax loss carryforward benefit will be realized
D)If the loss occurs in the first interim period

Question

Quizplus · Accepted Answer

If the loss occurs in the first interim period, it may not be recognized because there is uncertainty about the ability to realize the benefit in future periods within the same fiscal year.

When Can Benefits of an Income Tax Loss in an Interim