B12 Corporation is currently in the sixth year of its existence (2022). In 2017-2021, it reported the following income and (losses net operating loss carryovers or carrybacks). 2017 2018 2019 2020 2021 2022 $ (83,000) (36,500) 66,500 159,500 (231,500) 313,000 Required: a. What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)? b. What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?
B12 Corporation is currently in the sixth year of its existence (2022). In 2017-2021, it reported the following income and (losses net operating loss carryovers or carrybacks). 2017 2018 2019 2020 2021 2022 $ (83,000) (36,500) 66,500 159,500 (231,500) 313,000 Required: a. What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)? b. What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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B12 Corporation is currently in the sixth year of its existence (2022). In 2017-2021, it reported the following income and (losses) (before
net operating loss carryovers or carrybacks).
2017
2018
2019
2020
2021
2022
Required:
a. What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)?
b. What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?
Sho
$ (83,000)
(36,500)
66,500
159,500
Complete this question by entering your answers in the tabs below.
(231,500)
313,000
Required A Required B
What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)?
Complete this question by entering your answers in the tabs below.
Required A
Required A Required B
Year
2022
What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)?
2022 taxable income after the NOL deduction
Required B
ext
Book-tax
Difference
D
< Required A
What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?
Favorable or
Unfavorable
Temporary or
Permanent
Favorable
Temporary
Required B >
< Required A
***
4
Required B
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