Grimes Corporation began business in 2017 and incurred losses for its first two years. In 2019, it became profitable. The following table shows Grimes taxable income before consideration of its NOLS: 2017 2018 2019 2020 2021 2022 Taxable income $ (820,000) $ (254,000) $ 320,000 $541,000 $210,000 $298,000 Required: Recompute Grimes' taxable income for 2019 through 2022 after its allowable net operating loss deduction. What is 2020 & 2022 NOL Deduction and Taxable income? Taxable income before NOL deduction NOL deduction Taxable income 2019 2020 2021 $ 320,000 $541,000 $210,000 (168,000) (320,000) 0 $ 42,000 $ 2022 $298,000
Grimes Corporation began business in 2017 and incurred losses for its first two years. In 2019, it became profitable. The following table shows Grimes taxable income before consideration of its NOLS: 2017 2018 2019 2020 2021 2022 Taxable income $ (820,000) $ (254,000) $ 320,000 $541,000 $210,000 $298,000 Required: Recompute Grimes' taxable income for 2019 through 2022 after its allowable net operating loss deduction. What is 2020 & 2022 NOL Deduction and Taxable income? Taxable income before NOL deduction NOL deduction Taxable income 2019 2020 2021 $ 320,000 $541,000 $210,000 (168,000) (320,000) 0 $ 42,000 $ 2022 $298,000
Chapter16: Property Transactions: Capital Gains And Losses
Section: Chapter Questions
Problem 49P
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