Question
WCC Corp. has a $185,000 net operating loss carryover into 2020. Assume that it reported $92,000 of taxable income in 2020 (before the net operating
WCC Corp. has a $185,000 net operating loss carryover into 2020. Assume that it reported $92,000 of taxable income in 2020 (before the net operating loss deduction) and $115,000 of taxable income in 2021 (before the net operating loss deduction).
a. What is WCCs taxable income in 2020 and 2021 (after the net operating loss deduction), assuming the $185,000 NOL carryover originated in 2016?
b. What is WCCs taxable income in 2020 and 2021 (after the net operating loss deduction), assuming the $185,000 NOL carryover originated in 2019?
c. Assuming the $185,000 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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Pioneers Of A Profession Chartered Accountants To 1879
Authors: Jas. C. Stewart
1st Edition
0367532557, 9780367532550
