Grimes Corporation began business in 2017 and incurred losses for its first two years. In 2019, it became profitable. Th
Posted: Sun Jun 05, 2022 7:53 pm
Grimes Corporation began business in 2017 and incurred losses
for its first two years. In 2019, it became profitable. The
following table shows Grimes taxable income before consideration of
its NOLs:
Required:
Recompute Grimes’ taxable income for 2019 through 2022 after its
allowable net operating loss deduction.
What is 2020 & 2022 NOL Deduction and Taxable Income?
Taxable income before NOL deduction NOL deduction Taxable income 2019 $ 320,000 (320,000) 0 $ 2020 $541,000 2021 2022 $210,000 $ 298,000 (168,000) $ 42,000
for its first two years. In 2019, it became profitable. The
following table shows Grimes taxable income before consideration of
its NOLs:
Required:
Recompute Grimes’ taxable income for 2019 through 2022 after its
allowable net operating loss deduction.
What is 2020 & 2022 NOL Deduction and Taxable Income?
- Grimes Corporation Began Business In 2017 And Incurred Losses For Its First Two Years In 2019 It Became Profitable Th 1 (7.85 KiB) Viewed 60 times