B12 Corporation is currently in the sixth year of its existence (2022). In 2017-2021, it reported the following income and (losses net operating loss carryovers or carrybacks). 2017 2018 2019 2020 2021 2022 $ (83,000) (36,500) 66,500 159,500 (231,500) 313,000 Required: a. What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)? b. What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?
B12 Corporation is currently in the sixth year of its existence (2022). In 2017-2021, it reported the following income and (losses net operating loss carryovers or carrybacks). 2017 2018 2019 2020 2021 2022 $ (83,000) (36,500) 66,500 159,500 (231,500) 313,000 Required: a. What is B12's 2022 taxable income after the NOL deduction (assume it does not elect to forgo any carrybacks, if applicable)? b. What is its 2022 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 32P
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