ces Grimes Corporation began business in 2017 and incurred losses for its first two years. In 2019, it became profitable. The following table shows Grimes's taxable income before consideration of its NOLS: Taxable income 2017 $ (820,000) Taxable income before NOL deduction NOL deduction Taxable income 2018 $ (254,000) 2019 $ 320,000 (320,000) 2019 $ 320,000 Required: Recompute Grimes's taxable income for 2019 through 2022 after its allowable net operating loss deduction. 2021 2022 2020 $541,000 $210,000 $ 298,000 541,000 (168,000) o$ 42,000 o $ 2020 $ 541,000 2021 $ 210,000 2022 $ 298,000
ces Grimes Corporation began business in 2017 and incurred losses for its first two years. In 2019, it became profitable. The following table shows Grimes's taxable income before consideration of its NOLS: Taxable income 2017 $ (820,000) Taxable income before NOL deduction NOL deduction Taxable income 2018 $ (254,000) 2019 $ 320,000 (320,000) 2019 $ 320,000 Required: Recompute Grimes's taxable income for 2019 through 2022 after its allowable net operating loss deduction. 2021 2022 2020 $541,000 $210,000 $ 298,000 541,000 (168,000) o$ 42,000 o $ 2020 $ 541,000 2021 $ 210,000 2022 $ 298,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ces
Grimes Corporation began business in 2017 and incurred losses for its first two years. In 2019, it became profitable. The following table
shows Grimes's taxable income before consideration of its NOLS:
Taxable income
2017
$ (820,000)
Taxable income before NOL deduction:
NOL deduction
Taxable income
2018
$ (254,000)
2019
$ 320,000
(320,000)
2019
$ 320,000
Required:
Recompute Grimes's taxable income for 2019 through 2022 after its allowable net operating loss deduction.
2021
2022
2020
$541,000 $210,000 $ 298,000
541,000 (168,000)
o$ 42,000
o $
2020
$ 541,000
2021
$ 210,000
2022
$ 298,000
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