Exercise 7-31 (Algorithmic) (LO. 7) Emily, who is single, sustains an NOL of $11,640 in 2021. The loss is carried forward to 2022. For 2022, Emily's income tax Information before taking into account the 2021 NOL is as follows: Adjusted gross income $58,200 Itemized deductions: Medical ($6,984 - (7.5% * $58,200)] $2,619 Taxes 8,730 Interest expense on home mortgage 17,460 (28,809) Taxable income $29,391 The 2021 single standard deduction is $12,550; Emily's itemized deductions will exceed the 2022 single standard deduction (after adjustment for inflation), How much of the NOL carryforward can Emily use in 2022, and what is her adjusted gross income and her taxable income? Emily may use $ 11,640 of the NOL, resulting in adjusted gross income of 46,560 and taxable income X Feedback Check My Work A net operating loss (NOL) in a particular tax year would produce no tax benefit if the Code did not provide for the carryback and carryforward of such losses to profitable years. To provide partial relief from this inequitable tax treatment, a deduction is allowed for NOLS