Compute MV Corporation's 2021 taxable income given the following information relating to its year 1 activities. Also, compute MV's Schedule M-1 assuming that MV's federal income tax expense for book purposes is $100,000. Use Exhibit 16. 6. Gross profit from inventory sales of $500,000 (no book-tax differences). Dividends MV received from 25 percent-owned corporation of $100,000 (assume this is also MV's pro rata share of the distributing corporation's earnings) Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $350,000 (no book-tax differences) NOL carryover from 2020 of $10,000. Cash charitable contribution of $120,000. Assume the charitable donation is a qualified charitable contribution EXHIBIT 16-6 Net Operating Loss Carryback and Carryover Summary The Year NOL Originated Carrybacks Carrybacks Back two years. "Can offset 1001 of taxable income before Bestinning before 2018 the NOL deduction in Canyback Forward 20 years Can offset 100% of taxable income before the NOL deduction yan Back five years at offset up Carried forward indefinitely. Can offset up to 100of taxable income before the NOL to 1001 of taxable income deduction in tax years beginning before 2021. In tax years beginning after 2020, can offset up Beginning after 2017 and before 2021 before the NOL deduction in to 30 percent of table income after deducting NOL, carryovers from NOLA originating in tax carrybackyar years beinning before 2013 Beginning atter 2020 Not allowed Carried forward indefinitely an offset up to 8 percent of taxable income remaining after deductin NOL Canyovers from NOL originating in tax years beginning before 2018 corporation can who for the NOL.rack and carry the NOL and to be ar Ahora corporation carries back NOLW urcarry it back to the careers prior wears prior pending on the year the NOI. de Reg 1 Reg 2 Compute MV Corporation's 2021 taxable income given the following information relating to its year 1 activities. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Description Book Income (Dr) Cr Book-tax Book-tax adjustments adjustments (Dr) Cr Taxable income (Dr) Cr Gross profit Other income: Dividend income Gross Income Expenses: Business expenses other than DRD, CC, and NOL Federal income tax expense Total expenses before charitable contribution, NOL, and DRD Income before charitable contribution, NOL, and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes (modified taxable income) Charitable contributions Taxable income before DRD Dividends received deduction (ORD) Book/Taxable income