Question: In 2020, Smith Traders Incorporated and reported a net operating loss of $100,000. In 2021, before the NOL deduction, it reported taxable income of $50,000.

In 2020, Smith Traders Incorporated and reported a net operating loss of $100,000. In 2021, before the NOL deduction, it reported taxable income of $50,000. What is Smith Traders 2021 taxable income after the NOL deduction and what is its NOL carryforward to 2022?

a)	$0 taxable income; $50,000 NOL Carryforward

b)	$10,000 taxable income; $60,000 NOL Carryforward

c)	$40,000 taxable income; $60,000 NOL Carryforward

d)	$50,000 taxable income; $100,000 NOL Carryforward

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