Question
MWC Corporation is currently in the sixth year of its existence (2021). In 20162020, it reported the following income and (losses) (before net operating loss
MWC Corporation is currently in the sixth year of its existence (2021). In 20162020, it reported the following income and (losses) (before net operating loss carryovers or carrybacks).
| 2016 | $ (70,000) |
|---|---|
| 2017 | (30,000) |
| 2018 | 60,000 |
| 2019 | 140,000 |
| 2020 | (225,000) |
| 2021 | 300,000 |
a. What is MWC's 2021 taxable income after the NOL deduction (assume it elects to carryback any NOLs it is allowed to carryback)?
b. What is its 2021 booktax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?
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International Financial Reporting
Authors: Alan Melville
7th Edition
1292293128, 9781292293127
