ZuoTi.Pro
Question

MWC Corp. is currently in the sixth year of its existence (2017). In 2012–2016, it reported...

MWC Corp. is currently in the sixth year of its existence (2017). In 2012–2016, it reported the following income and (losses) (before net operating loss carryovers or carrybacks). 2012: $ (60,000 ) 2013: (20,000 ) 2014: 47,250 2015: 174,500 2016: (9,000 ) 2017: 387,500 a. Assuming the original facts and that MWC elects to not carry back NOLs, what was MWC’s 2015 taxable income?

b. If MWC does not elect to forgo any NOL carrybacks, what is its 2017 taxable income after the NOL deduction?

    MWC always elects to forgo NOL carrybacks.

c. What is its 2017 taxable income after the NOL deduction? What is its 2017 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?

    

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
MWC Corp. is currently in the sixth year of its existence (2017). In 2012–2016, it reported...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • MWC Corp. is currently in the sixth year of its existence (2019). In 2014–2018, it reported...

    MWC Corp. is currently in the sixth year of its existence (2019). In 2014–2018, it reported the following income and losses) (before net operating loss carryovers or carrybacks). 2014: 2015: 2016: 2017: 2018: 2019: $(86,000) (15,250) 61,250 152,000 (12,500) 350,000 a. What is MWC's 2019 taxable income after the NOL deduction? 2019 taxable income after the NOL deduction b. What is its 2019 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary? Book-tax...

  • Check my worl MWC Corp. is currently in the sixth year of its existence (2019). In...

    Check my worl MWC Corp. is currently in the sixth year of its existence (2019). In 2014-2018, it reported the following income and losses) (before net operating loss carryovers or carrybacks). 10 points 2014: 2015: 2016: 2017: 2018: 2019: $(93,000) (7,750) 66,750 169,000 (34,500) 440,000 eBook Print References a. What is MWC's 2019 taxable income after the NOL deduction? 2019 taxable income after the NOL deduction b. What is its 2019 book-tax difference associated with its NOL? Is it favorable...

  • A. In its first year of existence (2017), SCC corporation (a C corporation) reported a loss...

    A. In its first year of existence (2017), SCC corporation (a C corporation) reported a loss for tax purposes of $30,000. How much tax will SCC pay in year 2018 if it reports taxable income from operations of $21,000 before considering loss carryovers? B. In its first year of existence (2018), SCC corporation (a C corporation) reported a loss for tax purposes of $30,000. How much tax will SCC pay in year 2019 if it reports taxable income from operations...

  • WCC Corp. has a $185,000 net operating loss carryover into 2020. Assume that it reported $92,000...

    WCC Corp. has a $185,000 net operating loss carryover into 2020. Assume that it reported $92,000 of taxable income in 2020 (before the net operating loss deduction) and $115,000 of taxable income in 2021 (before the net operating loss deduction). a. What is WCC’s taxable income in 2020 and 2021 (after the net operating loss deduction), assuming the $185,000 NOL carryover originated in 2016? b. What is WCC’s taxable income in 2020 and 2021 (after the net operating loss deduction),...

  • In its first year of existence (year 1), Willow Corp. (a C corporation) reports a loss for tax purposes of $50,000. In...

    In its first year of existence (year 1), Willow Corp. (a C corporation) reports a loss for tax purposes of $50,000. In year 2 it reports a $40,000 loss. For year 3, it reports taxable income from operations of $100,000 before any loss carryovers. How much tax will Willow Corp. pay in year 3, what is its NOL carryover to year 4, and when will the NOL expire under the following assumptions? (New Corporate income tax rate has been mentioned...

  • 1)Information for Kent Corp. for the year 2016: Reconciliation of pretax accounting income and taxable income:...

    1)Information for Kent Corp. for the year 2016: Reconciliation of pretax accounting income and taxable income:   Pretax accounting income $181,000     Permanent differences (15,400) 165,600     Temporary difference-depreciation (12,800)   Taxable income $152,800   Cumulative future taxable amounts all from depreciation temporary differences:         As of December 31, 2015   $12,600    As of December 31, 2016   $25,400 The enacted tax rate was 20% for 2015 and thereafter. What should Kent report as the current portion of its income tax expense in the year 2016? 2)Information...

  • Information for Kent Corp. for the year 2016: Reconciliation of pretax accounting income and taxable income:...

    Information for Kent Corp. for the year 2016: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $180,900 Permanent differences (15,500) 165,400 Temporary difference-depreciation (12,900) Taxable income $152,500 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2015 $13,400 As of December 31, 2016 $26,300 The enacted tax rate was 30% for 2015 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2016? $5,360. $7,890. $26,300....

  • In its 2016 income statement, Tow Inc. reported proceeds from an officer's life insurance policy of...

    In its 2016 income statement, Tow Inc. reported proceeds from an officer's life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of $370,000 in its 2016 income tax return when the tax rate was 25%. Data related to the reversal of the excess tax deduction for depreciation follow: Year 2017 2018 2019 2020 Reversal of excess tax deduction $10,000 20,000 40,000 50,000 Enacted tax...

  • In year 1 (the current year), OCC Corp. made a charitable donation of $200,000 to the...

    In year 1 (the current year), OCC Corp. made a charitable donation of $200,000 to the Jordan Spieth Family Foundation (a qualifying charity). For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends received deduction, and before deducting its $40,000 NOL carryover from last year. a. What amount of the $200,000 donation is OCC allowed to deduct for tax purposes in year 1? b. In year 2, OCC did not make...

  • Puritan Corp. reported the following pretax accounting income and taxable income for its first three years...

    Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations: 2017 2018 2019 $ 341,000 (518, 000) 700,000 Puritan's tax rate is 38% for all years. Puritan elected a loss carryback As of December 31, 2018. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. What did Puritan report on December 31, 2018, as the deferred tax asset for the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT