Which of the Following Statements Regarding Mergers and Taxes Is

Which of the following statements regarding mergers and taxes is false?

A) Carryback and carryforward provisions essentially deliver the benefits of conglomeration to a small firm with volatile earnings.
B) It might appear that a conglomerate has a tax advantage over a single-product firm simply because losses in one division can offset profits in another division.
C) Companies with current-year losses can also use them to offset earnings (carryback) for the twenty prior years.
D) The IRS will disallow a tax break if it can show that the principal reason for a takeover is tax avoidance, so it is unlikely that the tax advantage could, by itself, be a valid reason to acquire another firm.