Corporation incurs a $100,000 NOL in 2019 In 2020, the corporation reports the following items Gross profit from operations $200,000 Operating expenses other than interest expense 120,000 Business interest expense 30,000 Even though the numbers in this problem are small, assume that Delta does not ...

a 11200 Deltas taxable income for 2020 is calculated as follows Opera ...

Corporation incurs a $100,000 NOL in 2019. In 2020, the corporation reports the following items: Gross profit

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Corporation incurs a $100,000 NOL in 2019. In 2020, the corporation reports the following items:

Gross profit from operations	$200,000
Operating expenses other than interest expense	120,000
Business interest expense	30,000

Even though the numbers in this problem are small, assume that Delta does not qualify for the small business exemption from the net business interest limitation.

a. What is Delta's taxable income in 2020?

b. What are Delta's carryovers to 2021?

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Federal Taxation 2020 Comprehensive

ISBN: 9780135196274

33rd Edition

Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse

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Question Posted: Jan 01, 2021 02:32 AM

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Corporation incurs a $100,000 NOL in 2019. In 2020, the corporation reports the following items: Gross profit

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Federal Taxation 2020 Comprehensive

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