Question
In its first year, Tanka. generated $84,000 of net operating loss, and made a $5,700 cash donation to a local charity. In its second year,
In its first year, Tanka. generated $84,000 of net operating loss, and made a $5,700 cash donation to a local charity. In its second year, Tanka generated a $244,000 profit, and made a $10,700 donation to the same charity.
$244,000 Income from operations
($84,000) Less: Net Operating carry forward
$160,000 Taxable income before charitable deduction
($16,000) Less: Charitable contributions @ 10%
= $144,000 Taxable Income
What amount of NOL was utilized? If there was a limit how much is it and if there was a carry forward NOL how much is it?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
8th edition
1111534918, 978-1111534912
