Question: X Corporation started operations in 2 0 2 0 . In the first year of operations, X - Corp generated a net - operating loss

X Corporation started operations in 2020. In the first year of operations, X-Corp generated a net-operating loss of ($120,000). For tax year 2021, X-Corp has a taxable income of $100,000. In 2022, X-Corp generated has taxable income of $60,000. Which of the following statements is TRUE:

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