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In 2015, Anna Kate, Inc. reported taxable income of 235,000. In 2016, it reported taxable income...

In 2015, Anna Kate, Inc. reported taxable income of 235,000. In 2016, it reported taxable income of 25,000. In 2017, it reported taxable income of 105,000. In 2018, Anna Kate experienced a net operating loss of 90,000. Assuming that Anna Kate chooses to forgo the carryback, how would Anna Kate apply this net operating loss?

  1. Please illustrate your answer for each year that is applicable.
  2. If there is a carryforward, the corporation will apply the carryforward in calculating taxable income on future income tax returns. What does a corporation do to receive the income tax benefit of a carryback?
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