Suppose a firm has the following taxable income as shown below. How much loss wor to be carried forward past 2022? Taxable Income $20,000 $15,000 Year 2018 2019 2020 2021 $10,000 ($30,000)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Subject: acounting 

Suppose a firm has the following taxable income as shown below. How much loss would be allowed
to be carried forward past 2022?
Year
Taxable Income
2018
2019
2020
2021
2022
$20,000
$15,000
$10,000
($30,000)
$16,000
a. $8,000 of loss
b. $14,000 of loss
c. $4,000 of loss
d.
$0 of loss
e.
none of the above 17,200
Transcribed Image Text:Suppose a firm has the following taxable income as shown below. How much loss would be allowed to be carried forward past 2022? Year Taxable Income 2018 2019 2020 2021 2022 $20,000 $15,000 $10,000 ($30,000) $16,000 a. $8,000 of loss b. $14,000 of loss c. $4,000 of loss d. $0 of loss e. none of the above 17,200
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