Question $1(5$ Marks$)-10$ minutes

Groh Inc. has the following taxable incomes for each year from $2020$ to $2023.$ Assume that there are no temporary or permanent differences in any of the years listed below. In $2024,$ Groh will incur a tax loss that it will carry back.

Year

Taxable Income or Loss

Tax Rate

Pard

$2020$

$$75,000$

$30\%$

$$22,500$

$2021$

$50,000$

$25\%$

$12,500$

$2022$

$100,000$

$30\%$

$30,000$

$2023$

$200,000$

$20\%$

$40,000$

$2024$

$(500,000)$

$$

$0$

Required

What process should Groh follow regarding its loss carryback? For example, what year should it carry back the loss to initially and explain the process.