Question
Ace Corp., a calendar year C corporation, started business on January 1, 2017. The company incurred a net operating loss in 2017, 2020, and 2021,
Ace Corp., a calendar year C corporation, started business on January 1, 2017. The company incurred a net operating loss in 2017, 2020, and 2021, and had zero taxable income or loss in 2018 and 2019. Ace Corp. expects to have taxable income in 2022. The net operating loss (NOL) schedule prepared through the end of 2021 is provided in the exhibit. For each of the 2022 taxable income amounts given in the table below, enter the amount of the company's 2022 taxable income after any NOL deduction and the amounts of the company's 2017, 2020, and 2021 NOLs to be carried forward to 2023. Enter loss amounts as negative whole numbers and income amounts as positive whole numbers. If a carryforward or taxable income amount is zero, enter a zero (0).
Net Operating Loss Carryforward Schedule \begin{tabular}{|c|c|c|c|c|c|} \hline & A & B & C & D & E \\ \hline 1 & & \multicolumn{3}{|c|}{ Net Operating Loss Carryforwards to 2023 : } & \\ \hline 2 & 2022TaxableIncomeBeforeNOLDeduction & 2017 NOL & 2020NOL & 2021NOL & 2022TaxableIncomeAfterNOLDeduction \\ \hline 3 & $50,000 & 123 & 123 & 123 & 123 \\ \hline 4 & $75,000 & 123 & 123 & 123 & 123 \\ \hline 5 & $100,000 & 123 & 123 & 123 & 123 \\ \hline 6 & $125,000 & 123 & 123 & 123 & 123 \\ \hline 7 & $150,000 & 123 & 123 & 123 & 123 \\ \hline 8 & $175,000 & 123 & 123 & 123 & 123 \\ \hline \end{tabular} Net Operating Loss Carryforward Schedule \begin{tabular}{|c|c|c|c|c|c|} \hline & A & B & C & D & E \\ \hline 1 & & \multicolumn{3}{|c|}{ Net Operating Loss Carryforwards to 2023 : } & \\ \hline 2 & 2022TaxableIncomeBeforeNOLDeduction & 2017 NOL & 2020NOL & 2021NOL & 2022TaxableIncomeAfterNOLDeduction \\ \hline 3 & $50,000 & 123 & 123 & 123 & 123 \\ \hline 4 & $75,000 & 123 & 123 & 123 & 123 \\ \hline 5 & $100,000 & 123 & 123 & 123 & 123 \\ \hline 6 & $125,000 & 123 & 123 & 123 & 123 \\ \hline 7 & $150,000 & 123 & 123 & 123 & 123 \\ \hline 8 & $175,000 & 123 & 123 & 123 & 123 \\ \hline \end{tabular}Step by Step Solution
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