Habiby, Inc., began operations in 2017 and has the following income and expenses for 2017 through 2020.

a. What is the amount of tax that Habiby should pay each year? 

b. How much would Hadley paid in tax if the old NOL rules were in place but the corporate tax rate was 21 percent?

Transcribed Image Text:

Income Expenses Taxable Income 2017 2018 2019 2020 $180,000 (280,000) $300,000 (150,000) $(100,000) $ 150,000 $ 320,000 (400,000) $(80,000) $ 320,000 (220,000) $100,000