MWC Corporation is currently in the sixth year of its existence (2021). In 2016–2020, it reported the following income and (losses) (before net operating loss carryovers or carrybacks). 2016$ (89,000)2017(27,000)201868,5002019148,5002020(233,500)2021415,000 a. What is MWC's 2021 taxable income after the NOL deduction (assume it elects to carryback any NOLs it is allowed to carryback)?b. What is its 2021 book–tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?

In this question, we have to calculate the taxable income of 2021

Answered: carrybacks).

Business

Accounting

carrybacks).

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 32P

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2016	$ (89,000)
2017	(27,000)
2018	68,500
2019	148,500
2020	(233,500)
2021	415,000

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