Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In 2023, Ashley's business had $20 million in revenue, and had $4,000,000 in net income in 2023. Her business had a Net Operating Loss of
In 2023, Ashley's business had $20 million in revenue, and had $4,000,000 in net income in 2023. Her business had a Net Operating Loss of $2,000,000 from 2022 that she carryforwarded to 2023. Which of the following is true in regards to her Net Operating Loss deduction in 2023 for California Income Taxes? Group of answer choices A. Ashley's $2,000,000 Net Operating Loss in 2022 is disallowed and cannot be used after 2022. B. Ashley can use the $2,000,000 Net Operating Loss to reduce her business' taxable income to $2,000,000 in 2023. C. Ashley's $2,000,000 Net Operating Loss from 2022 is suspended and will be carryforwarded to 2024. D. Ashley can use $1,600,000 of the Net Operating Loss to reduce her business' taxable income to $2,400,000 in 2023
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started