To what years can Rick and Sara's NOL be carried?

It can be carried forward

$.$

Question Content Area

d$.$ Indicate whether the following statements are "True" or "False" regarding the rationale for excluding the items that do not affect the NOL computation.

a$.$ Effectively, the NOL is made up of the business loss netted against Sara's salary.

b$.$ When computing taxable income, individual taxpayers are not allowed deductions for nonbusiness items.

c$.$ Adjustments must be made so that the loss more closely resembles the taxpayer's economic loss.