Question
TRW, Incorporated's began business in 2021 and incurred net operating losses for its first two years. In 2023, it became profitable. The following table shows
TRW, Incorporated's began business in 2021 and incurred net operating losses for its first two years. In 2023, it became profitable. The following table shows TRWs taxable income before consideration of these NOLs:
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | |
|---|---|---|---|---|---|---|---|---|
| Taxable income | $ (420,000) | $ (358,000) | $ 81,000 | $ 41,000 | $ 210,000 | $ 298,000 | $ 387,000 | $ 905,000 |
Required: Recompute TRWs taxable income for 2023 through 2028 after its allowable net operating loss deduction.
| 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | |
|---|---|---|---|---|---|---|
| Taxable income before NOL deduction | 81,00 | 41,00 | 210,000 | 298,000 | 387,000 | 905,000 |
| NOL deduction | ||||||
| Taxable income |
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Financial Accounting
Authors: V.K. Gopal
1st Edition
9788174467461
