Bell, Inc., an accrual basis taxpayer, makes and sells personal computing equipment. It includes basic one-year warranty service with most of its products and, for financial reporting purposes, recognizes an estimate of the expenses related to honoring those warranties when the products are sold. Bell reports the following in its financial statements for the year. Income Statement Warranty expense $500,000 Balance Sheet Allowance for existing warranty contracts 1/1 $ 30,000 Allowance for existing warranty contracts 12/31 $ 40,000. How much warranty expense may Bell deduct for the year? Answer: 500,000 Copp, Inc., a calendar year taxpayer, generated the following taxable income and losses before considering the use of any NOLs. Taking into account the temporary law changes in the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, determine Copp's final taxable income for each year afer considering the NOLs. Question. Income Pre-NOL Income after NOL 2014 $1,200,000 o 2015 $1,000,000 0 2016 $1,000,000 0 2017 $1,000,000 0 2018 ($1,500,000) 2019 ($1.500,000) 2020 ($500,000) 2021 ($1,500,000) 2022 $ 500,000 4,500,000 X