MWC Corp. is currently in the sixth year of its existence (2015). In 2010-2014, it reported the following income and (losses) (before net operating loss carryovers or carrybacks).
2010: ...........($ 70,000)
2011: ............ .(30,000)
2012: ...............60,000
2013: .............140,000
2014: ........... .(25,000)
2015: .............300,000
a) Assuming the original facts and that MWC elects to not carry back NOLs, what was MWC's 2013 taxable income?
b) If MWC does not elect to forgo any NOL carrybacks, what is its 2015 taxable income after the NOL deduction?
c) If MWC always elects to forgo NOL carrybacks, what is its 2015 taxable income after the NOL deduction? What is its 2015 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?