WCC Corp. has a $100,000 net operating loss carryover to 2022 from a previous year. Assume that it reported $75,000 of taxable income in 2022 (before the net operating loss deduction) and $30,000 of taxable income in 2023 (before the net operating loss deduction).

a) What is WCC’s taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $100,000 NOL carryover originated in 2017?

b) What is WCC’s taxable income in 2022 and 2023 (after the net operating loss deduction), assuming the $100,000 NOL carryover originated in 2020 and WCC elected to forgo the NOL carry back option?

c) Assuming the same facts as in part (b), what is WCC’s book–tax difference associated with the NOL in 2022 and in 2023? Identify the book–tax difference for each year as permanent or temporary.