Question
WCC Corp. has a $165,000 net operating loss carryover into 2020. Assume that it reported $88,000 of taxable income in 2020 (before the net operating
WCC Corp. has a $165,000 net operating loss carryover into 2020. Assume that it reported $88,000 of taxable income in 2020 (before the net operating loss deduction) and $95,000 of taxable income in 2021 (before the net operating loss deduction). (Leave no answer blank. Enter zero if applicable.)
a. What is WCCs taxable income in 2020 and 2021 (after the net operating loss deduction), assuming the $165,000 NOL carryover originated in 2016?
b. What is WCCs taxable income in 2020 and 2021 (after the net operating loss deduction), assuming the $165,000 NOL carryover originated in 2019?
c. Assuming the $165,000 NOL carryover originated in 2019, what is WCCs book-tax difference associated with the NOL in 2020 and in 2021 and identify the book tax difference for each year as permanent or temporary?
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Payroll Accounting 20
Authors: Bernard J. Bieg, Judith A. Toland
26th Edition
1337268798, 9781337268790
