Beta Corporation incurs a $90,000 NOL in 2019. In 2020, the corporation reports the following items:...
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?
Homework Answers
Answer a) taxable income of beta
- Before interest expense=$170000-150000 =$20000
- Before NOL deduction=$20000-32000 =$-12000 ie loss $12000
This company has incurred loss then No NOL deduction will allowed.
Answer b) Beta will carryover $ 102000 as NOL in next year.
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Beta Corporation incurs a $90,000 NOL in 2019. In 2020, the
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Also, provide an explanation of your results! Thank you!
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Gross profit from inventory sales of $500,000 (no book–tax
differences)
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Pls help with the numbers in red.
Also, provide an explanation of your results! Thank you!
Compute HC Inc.'s current-year taxable income given the following information relating to its 2020 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. • Gross profit from inventory sales of $310,000 (no book-tax differences) Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the...
Compute MV Corp. 2019 taxable income given the following info
relating to its year 1 activities. Also, compute MV’s Schedule M-1
assuming that MV’s federal income tax expense for book purposes is
$100,000.
Gross profit from inventory sales of $500,000 (no book–tax
differences)
Dividends MV received from 25 percent-owned corporation of
$100,000 (assume this is also MV’s pro rata share of the
distributing corporation’s earnings).
Expenses other than DRD, charitable contribution, and
net operating loss (NOL), are $350,000 (no book–tax...
the questions are highlighted in yellow
loss co had the following items of income and deductions fir the
current year
in addition, loss co has the following capital loss carry
forward and NOL carry forward schedules. update the carry over
tables after each year.
calculate the dividends recieved deduction and net operatibg
loss for the following three years
н B C D E F G Dividends Received Deduction and Net Operating Loss Example Loss Co. had the following items of...
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