In its first vear Tapka gener ted 84 fnet

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 39P
icon
Related questions
Question
Sir please help me urgently please
Accounting
In its first year, Tanka. generated $84,000 of net
operating loss, and made a $5,700 cash
donation to a local charity. In its second year,
Tanka generated a $244,000 profit, and made a
$10,700 donation to the same charity.
$244,000 Income from operations
($84,000) Less: Net Operating carry forward
$160,000 Taxable income before charitable
deduction
($16,000) Less: Charitable contributions @ 10%
= $144,000 Taxable Income
What amount of NOL was utilized? If there was
a limit how much is it and if there was a carry
forward NOL how much is it?
Transcribed Image Text:Accounting In its first year, Tanka. generated $84,000 of net operating loss, and made a $5,700 cash donation to a local charity. In its second year, Tanka generated a $244,000 profit, and made a $10,700 donation to the same charity. $244,000 Income from operations ($84,000) Less: Net Operating carry forward $160,000 Taxable income before charitable deduction ($16,000) Less: Charitable contributions @ 10% = $144,000 Taxable Income What amount of NOL was utilized? If there was a limit how much is it and if there was a carry forward NOL how much is it?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Balance Of Payment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage