Beta Corporation incurs a $90,000 NOL in 2019. In 2020, the corporation reports the following items:

Gross profit from operations $ 170,000.00

Operating expenses other than interest expense $ 150,000.00

Business interest expense $ 32,000.00

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

a.) What is beta’s taxable income in 2020?

Calculate Beta’s taxable income before business interest deduction, then taxable income before NOL deduction, and finally taxable income in 2020.

b.) What are Beta’s carryovers to 2021?

Answer rating: 100% (QA)

a Taxable income of Beta before interest expense 170... View the full answer