Question
WCC Corporation has a $205,000 net operating loss carryover to 2022 from a previous year. Assume that it reported $96,000 of taxable income in 2022
WCC Corporation has a $205,000 net operating loss carryover to 2022 from a previous year. Assume that it reported $96,000 of taxable income in 2022 (before the net operating loss deduction) and $135,000 of taxable income in 2023 (before the net operating loss deduction).
a. What is WCC's taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $205,000 NOL carryover originated in 2017?
| Year | Taxable Income |
| 2022 | ? |
| 2023? | ? |
b. What is WCCs taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $205,000 NOL carryover originated in 2021?
| Year | Taxable Income |
| 2022 | ? |
| 2023? | ? |
c. Assuming the $205,000 NOL carryover originated in 2020, what is WCCs booktax difference associated with the NOL in 2022 and in 2023? Is it permanent or temporary?
| Year | Book-Tax Difference | Favorable or Unfavorable? | Temporary or Permanent? |
| 2022 | ? | ? | ? |
| 2023 | ? | ? | ? |
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Auditor Going Concern Reporting A Review Of Global Research And Future Research Opportunities
Authors: Marshall A. Geiger, Anna Gold, Philip Wallage
1st Edition
0367649489, 978-0367649487
