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The Giant consolidated group includes SubTwo, which was acquired as part of with it to the group a large NOL carryforward, $3,000,000 of which is available this year under the SRLY rules due to SubTwo's positive contribution to the group's taxable income. The § 382 limitation with respect to SubTwo is $500,000. a. How much of SubTwo's NOL (if any) can be used this year to reduce consolidated taxable income (before considering the taxable income limitation)? 500,000 $ b. Select the appropriate computation as a Microsoft Excel command from below. DEDUCTION=IF(AND(382AMT>0,SRLYAMT>0),382AMT,MAX(0,382AMT,SRLYAMT))

The Giant consolidated group includes SubTwo, which was acquired as part of with it to the group a large NOL carryforward, $3,000,000 of which is available this year under the SRLY rules due to SubTwo's positive contribution to the group's taxable income. The § 382 limitation with respect to SubTwo is $500,000. a. How much of SubTwo's NOL (if any) can be used this year to reduce consolidated taxable income (before considering the taxable income limitation)? 500,000 $ b. Select the appropriate computation as a Microsoft Excel command from below. DEDUCTION=IF(AND(382AMT>0,SRLYAMT>0),382AMT,MAX(0,382AMT,SRLYAMT))

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Giant consolidated group includes SubTwo, which was acquired as part of a § 382 ownership change. SubTwo brought with it to the group a large NOL carryforward, $3,000,000 of which is available this year under the SRLY rules due to Sub Two's positive contribution to the group's taxable income. The § 382 limitation with respect to SubTwo is $500,000. a. How much of SubTwo's NOL (if any) can be used this year to reduce consolidated taxable income (before considering the taxable income limitation)? 500,000 b. Select the appropriate computation as a Microsoft Excel command from below. DEDUCTION=IF(AND(382AMT>0,SRLYAMT>0),382AMT,MAX(0,382AMT,SRLYAMT)) ▼
Transcribed Image Text:The Giant consolidated group includes SubTwo, which was acquired as part of a § 382 ownership change. SubTwo brought with it to the group a large NOL carryforward, $3,000,000 of which is available this year under the SRLY rules due to Sub Two's positive contribution to the group's taxable income. The § 382 limitation with respect to SubTwo is $500,000. a. How much of SubTwo's NOL (if any) can be used this year to reduce consolidated taxable income (before considering the taxable income limitation)? 500,000 b. Select the appropriate computation as a Microsoft Excel command from below. DEDUCTION=IF(AND(382AMT>0,SRLYAMT>0),382AMT,MAX(0,382AMT,SRLYAMT)) ▼
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