All of the following are requisites in the carry-over of net operating loss, except:Select one:a.Carry over is not allowed if the corporation is subject to MCIT during the taxable yearb.Even if a corporation paid tax based on MCIT, the running of the prescriptive period is not interruptedc.The carry-over is good for only one (1) yeard.There must be no substantial change in the ownership of the business

The following taxpayers entitled to deduct Net Operating Loss Carry-Over (NOLCO), except:Select one:a.Self-employed individual taxpayersb.Domestic and resident foreign corporationscovered by the NCITc.Individual taxpayers earning purely compensation incomed.Estates and trusts

Losses are allowed as deductions from gross income if the following provisions are met, except:Select one:a.The loss must be that of a taxpayer and incurred in connection with trade, business or professionb.The loss need not be reported to the BIR.c.The loss must not be compensated by insurance or other forms of indemnityd.The loss must be actually sustained in a closed and completed transaction

Net loss is closed to capital by debiting Income Summary and crediting capital account.Select one:TrueFalse

If an entity fails to accrue expenses at year end, the net income is:Group of answer choicesOverstatedUnderstatedUnaffectedconverted into net loss PreviousNext

Acquiring the company with tax losses enables the acquirer to use the tax gains to lower its tax liability.Select one:TrueFalse