Grimes Corporation began business in 2017 and incurred losses for its first two years. In 2019, it became profitable. The following table shows Grimes's taxable income before consideration of its NOLs:

2017 2018 2019

Taxable income $ (820,000) $ (254,000) $ 320,000

2020 2021 2022

Taxable income $ 541,000 $ 210,000 $ 298,000

Required:

Recompute Grimess taxable income for 2019 through 2022 after its allowable net operating loss deduction.

2019202020212022Tax income before NOL320,000541,000$210,000$298,000NOL deduction256,000 **Marked incorrect

432,800

**Marked incorrect

$168,000

**CORRECT

230,400

**Marked incorrect

Taxable income

64,000

**Marked incorrect

108,200

**Marked incorrect

$42,000

**CORRECT

59,600

**Marked incorrect