Question
WCC Corporation has a $210,000 net operating loss carryover into 2021. Assume that it reported $97,000 of taxable income in 20021 ( before the net
WCC Corporation has a $210,000 net operating loss carryover into 2021. Assume that it reported $97,000 of taxable income in 20021 ( before the net operating loss deduction) and $140,000 of taxable income in 2022 ( before the net operating loss deduction)
A. What is WCCs taxable income in 2021 and 2022 ( after the net operating loss deduction), assuming the $210,000 NOL carryover originate in 2016?
B. What is WCCs taxable income in 2021 and 2022 ( after the net operating loss deduction), assuming the $210,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss?
C. Assuming the $210,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss, what is WCCs book tax difference associated with the NOL in 2021 and in 2022? Identify the book-tax difference for each year as permanent or temporary?
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
5th Canadian edition
978-1259105708
