WCC Corp. has a $225,000 net operating loss carryover into 2023. Assume that it reported $100,000 of taxable income in 2023 (before the net operating loss deduction) and $155,000 of taxable income in 2024 (before the net operating loss deduction). b. What is WCC's taxable income in 2023 and 2024 (after the net operating loss deduction), assuming the $155,000 NOL carryover originated in 2020 and WCC elected to forgo the NOL carry back option? 2023 taxable income? 2024 taxable income?

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.