In 2021, Zoom corporation has gross income of $350,000, operating expenses of $280,000 and a dividends received deduction of $20,000. Zoom corporation has a $150,000 net operating loss dedcution carryover from 2020. Zoom Corporation will report net income/loss for 2021 of: Select one: a. $0. b. ($100,000) net operating loss. c. $50,000. d. None of the above.
In 2021, Zoom corporation has gross income of $350,000, operating expenses of $280,000 and a dividends received deduction of $20,000. Zoom corporation has a $150,000 net operating loss dedcution carryover from 2020. Zoom Corporation will report net income/loss for 2021 of: Select one: a. $0. b. ($100,000) net operating loss. c. $50,000. d. None of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In 2021, Zoom corporation has gross income of $350,000, operating expenses of $280,000 and a dividends received deduction of $20,000. Zoom corporation has a $150,000 net operating loss dedcution carryover from 2020. Zoom Corporation will report net income/loss for 2021 of:
Select one:
a.
$0.
b.
($100,000) net operating loss.
c.
$50,000.
d.
None of the above.
Expert Solution
Step 1
Net operating loss deduction: It implies to a tax credit that is available to a business as a result of excess of it's business tax deductions over it's taxable income for the period. It is carried over and adjusted against the net operating income of the future period to the limit of the net income available.
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