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: 2017 2018 2019 2020 2021 2022 Taxable income $ (820,000) $ (254,000) $ 320,000 $541,000 $210,000 $298,000 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 2020 2021 $ 320,000 $541,000 $210,000 (168,000) (320,000) 0 $ 42,000 $ 2022 $298,000
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: 2017 2018 2019 2020 2021 2022 Taxable income $ (820,000) $ (254,000) $ 320,000 $541,000 $210,000 $298,000 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 2020 2021 $ 320,000 $541,000 $210,000 (168,000) (320,000) 0 $ 42,000 $ 2022 $298,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am.101.
Transcribed Image Text: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:
2017
2018
2019
2020
2021
2022
Taxable income $ (820,000) $ (254,000) $ 320,000 $541,000 $210,000 $298,000
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)
$
2020
2021
$541,000 $210,000
(168,000)
$ 42,000
2022
$298,000
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