TRW Inc. began business in 2018 and incurred net operating losses for its first two years. In

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TRW Inc. began business in 2018 and incurred net operating losses for its first two years. In 2020, it became profitable. The following table shows TRW€™s taxable income before consideration of these NOLs.

2021 2022 2025 2018 2019 2020 2023 2024 Taxable income $(420,000) $(358,000) $81,000 $41,000 $210,000 $298,000 $387,000

Recompute TRW€™s taxable income for 2020 through 2025 after its allowable net operating loss deduction.

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Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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