If a corporation recognizes an operating loss carryforward in the year of the loss, it is agreed that the corporation should deduct the tax benefit from its operating loss.

Question

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When a corporation recognizes an operating loss carryforward in the year of the loss, it is required to deduct the tax benefit from its operating loss in that year. This is in accordance with the generally accepted accounting principles and tax laws.

If a Corporation Recognizes an Operating Loss Carryforward in the Year