Income tax fundamentals ch11

Business Tax

5. LO 11.2 Mask Corporation generated a net operating loss of $60,000 in 2018 and taxable income of $24,000 in 2019. How much NOL can Mask use in 2019 to reduce taxable income? a. $0 b. $19,200 c. $24,000 d. $60,000 6. LO 11.3 Walnut Corporation owns 60 percent of Teak Corporation, a domestic corporation. During the current year, Walnut Corporation received $20,000 in dividends from Teak Corporation. Assuming that Walnut's taxable income for the current year before the dividends received deduction is $500,000, what is the amount of Walnut's dividends received deduction for the current year? a. $10,000 b. $13,000 c. $16,000 d. $20,000 None of the above e. 7. LO 11.3