Henderson Inc. reports the following taxable and pretax income (loss) for 2021. Tax rate is 20% for
Question:
Henderson Inc. reports the following taxable and pretax income (loss) for 2021. Tax rate is 20% for all years.
| Year | Taxable Income (Loss) | Pretax Income (Loss) |
| 2021 | (200) | (230) |
| 2022 | 350 | 100 |
At the end of 2021, Henderson believes that it is likely that one-fourth of the benefits of the NOL carryforward will not be realized in the future.
REQUIRED: FILL IN THE BLANKS BELOW. Do NOT use $ sign in front of numbers.
The NOL Carryforward resulting from the 2021 loss is ____________
On 12/31/2021, DTA valuation allowance is FILL IN THE BLANK
Net Loss for 2021 is ____________
At the end of 2022, due to the signing of a huge new contract, Henderson reverses its previous assessment on the realizability of the benefits of DTA. It now believes all of its tax benefits will be realized. ____________.
Taxable income after applying NOL carry forward for 2022 is ____________
Income Tax Expense for 2022 is ____________
