AC507-3:Assess the Federal net operating loss rules.

Scenario:The Smith Company, a C Corporation, in 2021 has a loss of $200,000. During 2022, 2023, 2024, and 2025, the company experienced the following:

• 2022 - income of $120,000
• 2023 - income of $50,000
• 2024 - loss of $20,000
• 2025 - income of $200,000

Determine the taxes paid/refunded in each year, 2021, 2022, 2023, 2024, and 2025. Assume the income tax rate for all years is a 21% flat tax rate on all income levels.