WCC Corporation has a $145,000 net operating loss carryover to 2022 from a previous year. Assume that it reported $84,000 of taxable income in 2022 (before the net operating loss deduction) and $75,000 of taxable income in 2023 (before the net operating loss deduction). Note: Leave no answer blank. Enter zero if applicable. Required: What is WCC's taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $145,000 NOL carryover originated in 2017? What is WCC's taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $145,000 NOL carryover originated in 2020 and WCC elected to forgo the NOL carry back option? Assuming the $145,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss, what is the book-tax difference for each year? Is it favorable or unfavorable? Is it temporary or permanent?
WCC Corporation has a $145,000 net operating loss carryover to 2022 from a previous year. Assume that it reported $84,000 of taxable income in 2022 (before the net operating loss deduction) and $75,000 of taxable income in 2023 (before the net operating loss deduction). Note: Leave no answer blank. Enter zero if applicable. Required: What is WCC's taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $145,000 NOL carryover originated in 2017? What is WCC's taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $145,000 NOL carryover originated in 2020 and WCC elected to forgo the NOL carry back option? Assuming the $145,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss, what is the book-tax difference for each year? Is it favorable or unfavorable? Is it temporary or permanent?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
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WCC Corporation has a $145,000 net operating loss carryover to 2022 from a previous year. Assume that it reported $84,000 of taxable income in 2022 (before the net operating loss deduction) and $75,000 of taxable income in 2023 (before the net operating loss deduction).
Note: Leave no answer blank. Enter zero if applicable.
Required:
- What is WCC's taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $145,000 NOL carryover originated in 2017?
- What is WCC's taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $145,000 NOL carryover originated in 2020 and WCC elected to forgo the NOL carry back option?
- Assuming the $145,000 NOL carryover originated in 2020 and WCC elected to not carry back the loss, what is the book-tax difference for each year? Is it favorable or unfavorable? Is it temporary or permanent?
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