InterNol, Inc. is an accrual basis calendar year C corporation. InterNol is a manufacturer that has gross profit after cost of goods sold for the year of $400,000. InterNol has a net operating loss carryforward from prior years (that are not from years before 2018) of $320,000. The NOL is not reflected in the $400,000 gross profit above. The following information also applies to its current year:

business interest income not in gross profit              $ 50,000

business interest expense not in gross profit             300,000

Assume the following items for InterNol's current year:

no dividends received and no charitable contributions more than $30 million in gross receipts for the current year and the prior 10 years no depreciation, amortization or depletion for the current year no floor plan interest expense current tax year is 2022 and remember not to take account of any tax law changes made in 2020 or 2021 for this problem.

Required:      

1. What is InterNol's adjusted taxable income under Section 163(j)? Explain and show your computations.

2. What is InterNol's taxable income after all allowable deductions. Explain and show your computations.

3. What is InterNol's income tax?

4. What are InterNol's carry overs to future tax years, if any? Explain and show your computations.