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MWC Corp. is currently in the sixth year of its existence (2020). In 20152019, it reported the following income and (losses) (before net operating loss
MWC Corp. is currently in the sixth year of its existence (2020). In 20152019, it reported the following income and (losses) (before net operating loss carryovers or carrybacks).
| 2015 | $ | (63,000 | ) |
| 2016 | (6,000 | ) | |
| 2017 | 45,250 | ||
| 2018 | 154,000 | ||
| 2019 | (15,000 | ) | |
| 2020 | 420,000 | ||
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a. What is MWC's 2020 taxable income after the NOL deduction?
b. What is its 2020 booktax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?
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