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 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 InterNols current year:

• no dividends received and no charitable contributions
• more than $25 million in gross receipts for 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 2019 (also assume 2019 tax laws are the same as 2018)

Required:

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

2. What is InterNols taxable income after all allowable deductions. Explain and show your computations.

3. What is InterNols income tax?

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