c. Assuming the $160,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss, what is WCC's book-tax difference associated with the NOL in 2021 and in 2022? Identify the book-tax difference for each year as permanent or temporary.
c. Assuming the $160,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss, what is WCC's book-tax difference associated with the NOL in 2021 and in 2022? Identify the book-tax difference for each year as permanent or temporary.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
wcC Corporation has a $160,000 net operating loss carryover into 2021. Assume that it reported $87,000 of
taxable income in 2021 (before the net operating loss deduction) and $90,000 of taxable income in 2022 (before
the net operating loss deduction). (Leave no answer blank. Enter zero if applicable.)
c. Assuming the $160,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss, what is WCC's book-tax
difference associated with the NOL in 2021 and in 2022? Identify the book-tax difference for each year as permanent or temporary.
Book-tax
Favorable or
Unfavorable
Temporary or
Permanent
Year
Difference
2021
2022](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b6f395f-b023-4542-a92d-f79aefe5df8a%2Fcbcb8c88-889b-44f8-acf7-98b4acf2a36a%2F3xwsk49_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
wcC Corporation has a $160,000 net operating loss carryover into 2021. Assume that it reported $87,000 of
taxable income in 2021 (before the net operating loss deduction) and $90,000 of taxable income in 2022 (before
the net operating loss deduction). (Leave no answer blank. Enter zero if applicable.)
c. Assuming the $160,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss, what is WCC's book-tax
difference associated with the NOL in 2021 and in 2022? Identify the book-tax difference for each year as permanent or temporary.
Book-tax
Favorable or
Unfavorable
Temporary or
Permanent
Year
Difference
2021
2022
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