MWC Corp. is currently in the sixth year of its existence (2017). In 2012 2016, it reported
Question:
MWC Corp. is currently in the sixth year of its existence (2017). In 2012– 2016, it reported the following income and (losses) (before net operating loss carryovers or carrybacks).
2012: ......................... ($ 70,000)
2013: ......................... ($ 30,000)
2014: ......................... $ 60,000
2015: ......................... $140,000
2016: ......................... ($ 25,000)
2017: ......................... $300,000
a. Assuming the original facts and that MWC elects to not carry back NOLs, what was MWC’s year 2015 taxable income?
b. If MWC does not elect to forgo any NOL carrybacks, what is its 2017 taxable income after the NOL deduction?
c. If MWC always elects to forgo NOL carrybacks, what is its 2017 taxable income after the NOL deduction? What is its 2017 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?
Step by Step Answer:
Taxation Of Individuals And Business Entities 2018 Edition
ISBN: 9781259711831
9th Edition
Authors: Brian C. Spilker, Benjamin C. Ayers, John Robinson, Edmund Outslay, Ronald G. Worsham, John A. Barrick, Connie Weaver